LivaNova (NASDAQ: LIVN) and Globus Medical (NYSE:GMED) are both mid-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.
Institutional and Insider Ownership
86.0% of LivaNova shares are owned by institutional investors. Comparatively, 70.2% of Globus Medical shares are owned by institutional investors. 0.3% of LivaNova shares are owned by insiders. Comparatively, 28.2% of Globus Medical shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
LivaNova has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Globus Medical has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.
This is a breakdown of recent recommendations for LivaNova and Globus Medical, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
LivaNova currently has a consensus price target of $78.17, suggesting a potential downside of 5.00%. Globus Medical has a consensus price target of $40.57, suggesting a potential downside of 7.07%. Given LivaNova’s higher possible upside, equities 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|
Valuation and Earnings
This table compares LivaNova and Globus Medical’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|LivaNova||$1.21 billion||3.27||-$62.78 million||$1.17||70.33|
|Globus Medical||$563.99 million||7.46||$104.34 million||$1.10||39.69|
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.
Globus Medical beats LivaNova on 8 of the 14 factors compared between the two stocks.
LivaNova Company Profile
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.
Globus Medical Company Profile
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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