LivaNova (NASDAQ: LIVN) and Globus Medical (NYSE:GMED) are both mid-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.
Volatility and Risk
LivaNova has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Globus Medical has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.
86.0% of LivaNova shares are held by institutional investors. Comparatively, 70.2% of Globus Medical shares are held by institutional investors. 0.3% of LivaNova shares are held by company insiders. Comparatively, 28.2% of Globus Medical shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares LivaNova and Globus Medical’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|LivaNova||$1.21 billion||3.17||-$62.78 million||$1.17||68.31|
|Globus Medical||$563.99 million||7.02||$104.34 million||$1.10||37.36|
Globus Medical has lower revenue, but higher earnings than LivaNova. Globus Medical is trading at a lower price-to-earnings ratio than LivaNova, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for LivaNova and Globus Medical, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
LivaNova currently has a consensus price target of $78.17, indicating a potential downside of 2.19%. Globus Medical has a consensus price target of $36.83, indicating a potential downside of 10.38%. Given LivaNova’s higher possible upside, analysts clearly believe LivaNova is more favorable than Globus Medical.
This table compares LivaNova and Globus Medical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Globus Medical beats LivaNova on 9 of the 14 factors compared between the two stocks.
LivaNova PLC is a medical device company focused on the development and delivery of therapeutic solutions. The Company’s segments include Cardiac Surgery, Cardiac Rhythm Management, Neuromodulation and Other. The Cardiac Surgery segment is engaged in the development, production and sale of cardiovascular surgery products. Cardiac Surgery products include oxygenators, heart-lung machines, autotransfusion, mechanical heart valves and tissue heart valves. The Cardiac Rhythm Management segment is engaged in the development, manufacturing and marketing of products for the diagnosis, treatment, and management of heart rhythm disorders and heart failure. Cardiac Rhythm Management products include high-voltage defibrillators Cardiac Resynchronization Therapy device (CRT-D) and low-voltage pacemakers. The Neuromodulation segment is engaged in the design, development and marketing of neuromodulation therapy for the treatment of drug-resistant epilepsy and treatment resistant depression.
About Globus Medical
Globus Medical, Inc. (Globus) is a medical device company focused on the design, development and commercialization of musculoskeletal implants that promote healing in patients with spine disorders. The Company is focused on implants that promote healing in patients with spine disorders. The Company’s products fall into one of two categories: Innovative Fusion or Disruptive Technologies. The Company sells its products through exclusive sales force in the United States, as well as within North, Central & South America, Europe, Asia, Africa and Australia. The sales force consists of direct sales representatives and distributor sales representatives employed by exclusive independent distributors.
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