Critical Contrast: LivaNova (LIVN) versus Its Competitors

LivaNova (NASDAQ:LIVN) is one of 511 public companies in the “Healthcare Equipment & Supplies” industry, but how does it compare to its peers? We will compare LivaNova to similar businesses based on the strength of its profitability, risk, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Profitability

This table compares LivaNova and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LivaNova	12.82%	16.35%	7.76%
LivaNova Competitors	-278.24%	-150.08%	-21.87%

Institutional & Insider Ownership

97.6% of LivaNova shares are held by institutional investors. Comparatively, 40.5% of shares of all “Healthcare Equipment & Supplies” companies are held by institutional investors. 0.3% of LivaNova shares are held by insiders. Comparatively, 14.8% of shares of all “Healthcare Equipment & Supplies” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares LivaNova and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
LivaNova	$1.39 billion	-$242.47 million	30.00
LivaNova Competitors	$1.88 billion	$139.14 million	9.47

LivaNova’s peers have higher revenue and earnings than LivaNova. LivaNova is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current recommendations and price targets for LivaNova and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LivaNova	0	3	8	1	2.83
LivaNova Competitors	4274	10549	18323	829	2.46

LivaNova currently has a consensus price target of $99.56, indicating a potential upside of 10.63%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 21.45%. Given LivaNova’s peers higher probable upside, analysts plainly believe LivaNova has less favorable growth aspects than its peers.

Volatility & Risk

LivaNova has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, LivaNova’s peers have a beta of 2.56, indicating that their average share price is 156% more volatile than the S&P 500.

Summary

LivaNova beats its peers on 8 of the 13 factors compared.

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.