Reviewing LivaNova (NASDAQ:LIVN) & Teleflex (NYSE:TFX)

LivaNova (NASDAQ:LIVN) and Teleflex (NYSE:TFX) are both mid-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Analyst Recommendations

This is a summary of current ratings for LivaNova and Teleflex, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LivaNova	1	2	7	0	2.60
Teleflex	1	6	2	0	2.11

LivaNova presently has a consensus target price of $74.78, suggesting a potential upside of 12.86%. Teleflex has a consensus target price of $133.57, suggesting a potential upside of 8.31%. Given LivaNova’s stronger consensus rating and higher possible upside, analysts clearly believe LivaNova is more favorable than Teleflex.

Volatility and Risk

LivaNova has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Teleflex has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LivaNova	-17.46%	16.54%	7.30%
Teleflex	-30.56%	14.30%	7.45%

Valuation & Earnings

This table compares LivaNova and Teleflex”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LivaNova	$1.39 billion	2.62	-$242.47 million	($4.46)	-14.86
Teleflex	$1.99 billion	2.74	-$905.64 million	($20.55)	-6.00

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

Institutional and Insider Ownership

97.6% of LivaNova shares are owned by institutional investors. Comparatively, 95.6% of Teleflex shares are owned by institutional investors. 0.3% of LivaNova shares are owned by company insiders. Comparatively, 0.7% of Teleflex shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

LivaNova beats Teleflex on 8 of the 13 factors compared between the two stocks.

About LivaNova

LivaNova PLC, a medical device company, designs, develops, manufactures, and sells therapeutic solutions worldwide. The company operates through Cardiopulmonary, Neuromodulation, and Advanced Circulatory Support segments. The Cardiopulmonary segment develops, produces, and sells cardiopulmonary products, including oxygenators, heart-lung machines, autotransfusion systems, perfusion tubing systems, cannulae, connect, and other related products. The Neuromodulation segment designs, develops, markets, and sells VNS Therapy System, an implantable pulse generator and connective lead that stimulates the vagus nerve; difficult-to-treat depression and drug-resistant epilepsy devices. The Advanced Circulatory Support segment develops, produces, and sells temporary life support products. It serves perfusionists, neurologists, neurosurgeons, and other physicians, as well as hospitals, other medical institutions, and healthcare providers. The company sells its products through direct sales representatives and independent distributors. LivaNova PLC was incorporated in 2015 and is headquartered in London, the United Kingdom.

About Teleflex

Teleflex Incorporated designs, develops, manufactures, and supplies single-use medical devices for common diagnostic and therapeutic procedures in critical care and surgical applications worldwide. The company provides vascular access products that comprise Arrow branded catheters, catheter navigation and tip positioning systems, and intraosseous access systems for the administration of intravenous therapies, the measurement of blood pressure, and the withdrawal of blood samples through a single puncture site. It also offers interventional products, which consists of various coronary catheters, structural heart support devices, and peripheral intervention and mechanical circulatory support platform that are used by interventional cardiologists and radiologists, and vascular surgeons; and Arrow branded pumps and catheters, Guideline, Turnpike, and Trapliner catheters, the Manta Vascular Closure, and Arrow Oncontrol devices. The company provides anesthesia products, such as airway and pain management products to support hospital, emergency medicine, and military channels; and surgical products, including metal and polymer ligation clips, and fascial closure surgical systems that are used in laparoscopic surgical procedures, percutaneous surgical systems, and other surgical instruments. It also offers interventional urology products comprising the UroLift System, an invasive technology for treating lower urinary tract symptoms due to benign prostatic hyperplasia; respiratory products, including oxygen and aerosol therapies, spirometry, and ventilation management products for use in various care settings; urology products, such as catheters, urine collectors, and catheterization accessories and products for operative endourology; and bladder management services. The company serves hospitals and healthcare providers, medical device manufacturers, and home care markets. Teleflex Incorporated was incorporated in 1943 and is headquartered in Wayne, Pennsylvania.