Head-To-Head Contrast: Penumbra (NYSE:PEN) and Silk Road Medical (NYSE:SILK)

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

Profitability

This table compares Penumbra and Silk Road Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Penumbra 3.03% 6.80% 5.40%
Silk Road Medical N/A N/A N/A

Insider & Institutional Ownership

90.3% of Penumbra shares are owned by institutional investors. Comparatively, 11.1% of Silk Road Medical shares are owned by institutional investors. 9.6% of Penumbra shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Penumbra and Silk Road Medical’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Penumbra $444.94 million 11.88 $6.60 million $0.51 297.98
Silk Road Medical $34.56 million 35.51 -$37.63 million N/A N/A

Penumbra has higher revenue and earnings than Silk Road Medical.

Analyst Recommendations

This is a summary of current ratings and target prices for Penumbra and Silk Road Medical, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Penumbra 0 1 7 0 2.88
Silk Road Medical 0 1 3 0 2.75

Penumbra presently has a consensus target price of $170.17, suggesting a potential upside of 11.97%. Silk Road Medical has a consensus target price of $43.00, suggesting a potential upside of 7.48%. Given Penumbra’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Penumbra is more favorable than Silk Road Medical.

Summary

Penumbra beats Silk Road Medical on 10 of the 11 factors compared between the two stocks.

About Penumbra

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.

About Silk Road Medical

Silk Road Medical, Inc. operates as a medical device company in the United States. It offers ENROUTE Transcarotid Neuroprotection System that is used to directly access the common carotid artery and initiate temporary blood flow reversal; ENROUTE Transcarotid Stent System, a self-expanding, self-tapering stent with clinical data regarding lasting safety outcomes; ENHANCE Transcarotid Peripheral Access Kit for use in gaining initial access to the common carotid artery; and ENROUTE 0.014 Guidewire for navigating and crossing the target lesion for delivery of interventional devices. The company was founded in 2007 and is headquartered in Sunnyvale, California.

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