Penumbra (NASDAQ: OBLN) and Obalon Therapeutics (NASDAQ:OBLN) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.

Analyst Ratings

This is a summary of current ratings and price targets for Penumbra and Obalon Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Penumbra 0 2 4 0 2.67
Obalon Therapeutics 0 2 3 0 2.60

Penumbra currently has a consensus target price of $160.00, indicating a potential upside of 27.29%. Obalon Therapeutics has a consensus target price of $7.80, indicating a potential upside of 356.14%. Given Obalon Therapeutics’ higher probable upside, analysts plainly believe Obalon Therapeutics is more favorable than Penumbra.

Volatility and Risk

Penumbra has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500. Comparatively, Obalon Therapeutics has a beta of -2.81, indicating that its share price is 381% less volatile than the S&P 500.

Institutional & Insider Ownership

75.1% of Penumbra shares are held by institutional investors. Comparatively, 33.8% of Obalon Therapeutics shares are held by institutional investors. 10.7% of Penumbra shares are held by insiders. Comparatively, 17.9% of Obalon Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Penumbra and Obalon Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Penumbra $333.76 million 12.95 $4.65 million ($0.01) -12,570.00
Obalon Therapeutics $9.91 million 3.07 -$34.76 million ($2.08) -0.82

Penumbra has higher revenue and earnings than Obalon Therapeutics. Penumbra is trading at a lower price-to-earnings ratio than Obalon Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Penumbra and Obalon Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Penumbra 7.19% 2.78% 2.35%
Obalon Therapeutics -205.20% -72.76% -46.80%

Summary

Penumbra beats Obalon Therapeutics on 11 of the 14 factors compared between the two stocks.

Penumbra Company Profile

Penumbra, Inc. designs, develops, manufactures, and markets medical devices in the United States, Europe, Canada, Australia, Japan, and internationally. The company offers neurovascular access systems designed to provide intracranial access for use in a range of neurovascular therapies under the Neuron, Neuron MAX, Select, BENCHMARK, DDC, and PX SLIM brands; aspiration based thrombectomy systems and accessory devices, including revascularization device for mechanical thrombectomy, such as Penumbra System under the ACE and the 3D Revascularization Device brands. It also offers neurovascular embolization coiling systems to treat patients with various sizes of aneurysms and other neurovascular lesions under the Penumbra Coil 400 and Penumbra SMART Coil brands. In addition, the company provides neurosurgical aspiration tools for the removal of tissue and fluids under the Artemis Neuro Evacuation Device brand; and detachable embolic coil systems for peripheral embolization under the RUBY Coil brand, as well as microcatheter for the delivery of detachable coils and occlusion devices under the LANTERN brand. Further, it offers detachable, microcatheter-deliverable occlusion devices designed primarily to occlude peripheral vessels under the POD (Penumbra Occlusion Device) brand; and aspiration-based thrombectomy systems for peripheral applications under the Indigo System brand, as well as a complementary device for use with RUBY Coil and POD for vessel occlusion under the POD Packing Coil brand. The company sells its products through direct sales organizations and distributors to hospitals in neuro and peripheral vascular markets. Penumbra, Inc. was founded in 2004 and is headquartered in Alameda, California.

Obalon Therapeutics Company Profile

Obalon Therapeutics, Inc., a vertically integrated medical device company, focuses on developing and commercializing medical devices to treat obese and overweight people by facilitating weight loss. It offers the Obalon balloon system designed to provide weight loss in obese patients. Obalon Therapeutics, Inc. was founded in 2008 and is headquartered in Carlsbad, California.

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