Echo Therapeutics (OTCMKTS:ECTE) and LivaNova (NASDAQ:LIVN) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Volatility & Risk

Echo Therapeutics has a beta of 9.09, meaning that its stock price is 809% more volatile than the S&P 500. Comparatively, LivaNova has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Insider & Institutional Ownership

90.9% of LivaNova shares are owned by institutional investors. 7.0% of Echo Therapeutics shares are owned by company insiders. Comparatively, 0.4% of LivaNova shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Echo Therapeutics and LivaNova’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Echo Therapeutics N/A N/A N/A N/A N/A
LivaNova $1.11 billion 3.51 -$189.40 million $3.17 25.36

Echo Therapeutics has higher earnings, but lower revenue than LivaNova.

Analyst Ratings

This is a breakdown of current ratings and price targets for Echo Therapeutics and LivaNova, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Echo Therapeutics 0 0 0 0 N/A
LivaNova 0 2 5 0 2.71

LivaNova has a consensus target price of $108.33, indicating a potential upside of 34.76%. Given LivaNova’s higher possible upside, analysts clearly believe LivaNova is more favorable than Echo Therapeutics.

Profitability

This table compares Echo Therapeutics and LivaNova’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Echo Therapeutics N/A N/A N/A
LivaNova -23.86% 8.56% 5.16%

Summary

LivaNova beats Echo Therapeutics on 6 of the 9 factors compared between the two stocks.

Echo Therapeutics Company Profile

Echo Therapeutics, Inc. engages in the development of transdermal skin permeation and diagnostic medical devices for wearable-health consumer and diabetes outpatient markets. It is developing continuous glucose monitoring (CGM) system, a needle-free wireless continuous glucose monitoring system in a hospital setting in the European Union. The company has a licensing agreement with Ferndale Pharma Group, Inc. to develop, manufacture, distribute, and market devices for skin preparation prior to the application of topical anesthetics or analgesics prior to a range of needle-based medical procedures in North America, the United Kingdom, South America, Australia, New Zealand, Switzerland, and other portions of the European Community. In addition, it has a license agreement with Handok Pharmaceuticals Co., Ltd. to develop, use, market, import, and sell CGM to medical facilities and individual consumers in South Korea; and a license, development, and commercialization agreement with Medical Technologies Innovation Asia, Ltd to research, develop, manufacture, and use CGM in the People's Republic of China, Hong Kong, Macau, and Taiwan. The company was founded in 1989 and is headquartered in Iselin, New Jersey.

LivaNova Company Profile

LivaNova PLC, a medical device company, designs, develops, manufactures, and sells therapeutic solutions worldwide. It operates in two segments, Cardiovascular (CV”) and Neuromodulation (NM). The CV segment develops, produces, and sells cardiopulmonary products, including heart-lung machines, oxygenators, perfusion tubing sets, cannulae, and accessories, as well as related equipment and disposables for autotransfusion and autologous blood washing for neonatal, pediatric, and adult patients. It also provides surgical tissue and mechanical valve replacements, and repair products for damaged or diseased heart valves, such as self-anchoring tissue heart, tissue heart, and mechanical heart valves, as well as heart valve repair products; and temporary extracorporeal cardiopulmonary life support solutions for critically ill patients. The NM segment designs, develops, and markets VNS Therapy System, an implantable device that delivers vagus nerve stimulation (VNS) therapy for the treatment of drug-resistant epilepsy, treatment-resistant depression, and obstructive sleep apnea. It is also involved in the development and clinical testing of the VITARIA System for treating heart failure through VNS. The company serves perfusionists, neurologists, neurosurgeons, and other physicians, as well as hospitals, other medical institutions, and healthcare providers. It sells its products through direct sales representatives and independent distributors. The company was founded in 1987 and is headquartered in London, the United Kingdom.

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