Critical Review: Penumbra (NYSE:PEN) vs. ProSomnus (NASDAQ:OSA)

Penumbra (NYSE:PEN) and ProSomnus (NASDAQ:OSA) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Risk and Volatility

Penumbra has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, ProSomnus has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500.

Earnings & Valuation

This table compares Penumbra and ProSomnus’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Penumbra	$1.06 billion	7.68	$90.95 million	$2.31	90.98
ProSomnus	$27.65 million	0.32	-$24.09 million	($1.56)	-0.32

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

Insider & Institutional Ownership

88.9% of Penumbra shares are owned by institutional investors. Comparatively, 70.0% of ProSomnus shares are owned by institutional investors. 5.3% of Penumbra shares are owned by company insiders. Comparatively, 7.7% of ProSomnus shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Penumbra	8.59%	7.49%	5.60%
ProSomnus	-87.14%	N/A	-106.30%

Analyst Ratings

This is a breakdown of current recommendations for Penumbra and ProSomnus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Penumbra	0	2	7	0	2.78
ProSomnus	0	1	3	0	2.75

Penumbra presently has a consensus target price of $304.45, indicating a potential upside of 44.86%. ProSomnus has a consensus target price of $2.33, indicating a potential upside of 365.74%. Given ProSomnus’ higher probable upside, analysts plainly believe ProSomnus is more favorable than Penumbra.

Summary

Penumbra beats ProSomnus on 12 of the 14 factors compared between the two stocks.

About Penumbra

Penumbra, Inc., together with its subsidiaries, designs, develops, manufactures, and markets medical devices in the United States and internationally. The company offers peripheral products, including the Indigo System for power aspiration of thrombus in the body; Lightning Flash, a mechanical thrombectomy system; Lightning Bolt 7, an arterial thrombectomy system; and CAT RX. It also provides access products, including guide catheters and the Penumbra distal delivery catheters under the Neuron, Neuron MAX Select, BENCHMARK, BMX96, BMX81, DDC, SENDit, and PX SLIM brands; Penumbra System, an integrated mechanical thrombectomy system comprising reperfusion catheters and separators, the 3D Revascularization Device, aspiration tubing, and aspiration pump under the Penumbra RED, JET, ACE, Max, 3D Revascularization Device, and Penumbra ENGINE brands; and neuro embolization coiling systems that includes the Penumbra Coil 400, a detachable coil that provides an alternative for the treatment of aneurysms and other complex lesions, as well as Penumbra SMART COIL, a detachable coil to treat patients with a wide range of neurovascular lesions; and POD400 and PAC400 brands. In addition, the company provides peripheral embolization products, such as Ruby Coil System consisting of detachable coils for peripheral applications; Penumbra LANTERN Delivery Microcatheter, a low-profile microcatheter with a high-flow lumen; POD (Penumbra Occlusion Device) System, a single device solution; and Packing Coil, a complementary device for use in other peripheral embolization products. Further, it offers an immersive 3D computer-based technology platform under the real immersive system brand; and neurosurgical tools, such as Artemis Neuro Evacuation Device for surgical removal of fluid and tissue from the ventricles and cerebrum. The company sells its products through direct sales organizations and distributors. Penumbra, Inc. was incorporated in 2004 and is headquartered in Alameda, California.

About ProSomnus

ProSomnus, Inc. operates as a medical technology company that develops, manufactures, and markets precision intraoral medical devices for treating and managing patients with obstructive sleep apnea. The company sells its products to sleep dentists, sleep physicians, primary care providers, otolarygologists, and other integrated healthcare service providers through a direct sales force. ProSomnus, Inc. is headquartered in Pleasanton, California.