LivaNova (NASDAQ: LIVN) and Globus Medical (NYSE:GMED) are both mid-cap medical equipment, supplies & distribution – nec companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Earnings and Valuation

This table compares LivaNova and Globus Medical’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LivaNova $1.21 billion 3.14 -$62.78 million $3.75 21.11
Globus Medical $563.99 million 6.90 $104.34 million $1.10 36.73

Globus Medical has lower revenue, but higher earnings than LivaNova. LivaNova is trading at a lower price-to-earnings ratio than Globus Medical, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for LivaNova and Globus Medical, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LivaNova 1 2 4 0 2.43
Globus Medical 1 4 7 0 2.50

LivaNova currently has a consensus target price of $78.17, indicating a potential downside of 1.24%. Globus Medical has a consensus target price of $36.83, indicating a potential downside of 8.83%. Given LivaNova’s higher possible upside, analysts clearly believe LivaNova is more favorable than Globus Medical.

Insider and Institutional 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, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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
LivaNova 4.63% 9.33% 6.82%
Globus Medical 17.54% 13.67% 12.35%

Summary

Globus Medical beats LivaNova on 9 of the 13 factors compared between the two stocks.

About LivaNova

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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