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

Earnings and Valuation

This table compares Nevro Corp. and LivaNova PLC’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Nevro Corp. $277.91 million 9.28 -$22.57 million ($1.38) -63.46
LivaNova PLC $1.21 billion 2.98 $191.69 million $0.57 129.65

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

Insider & Institutional Ownership

82.3% of LivaNova PLC shares are owned by institutional investors. 12.1% of Nevro Corp. shares are owned by insiders. Comparatively, 0.3% of LivaNova PLC shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Nevro Corp. and LivaNova PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nevro Corp. -14.33% -16.25% -9.43%
LivaNova PLC 2.26% 9.08% 6.61%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Nevro Corp. and LivaNova PLC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nevro Corp. 0 1 6 0 2.86
LivaNova PLC 1 2 4 0 2.43

Nevro Corp. presently has a consensus target price of $102.00, indicating a potential upside of 16.46%. LivaNova PLC has a consensus target price of $71.50, indicating a potential downside of 3.25%. Given Nevro Corp.’s stronger consensus rating and higher possible upside, equities analysts plainly believe Nevro Corp. is more favorable than LivaNova PLC.

Risk & Volatility

Nevro Corp. has a beta of -0.7, meaning that its stock price is 170% less volatile than the S&P 500. Comparatively, LivaNova PLC has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.

Summary

LivaNova PLC beats Nevro Corp. on 8 of the 13 factors compared between the two stocks.

About Nevro Corp.

Nevro Corp. is a global medical device company. The Company focuses on providing products that improve the quality of life of patients suffering from chronic pain. The Company has developed and commercialized the Senza spinal cord stimulation (SCS) system, an evidence-based neuromodulation platform for the treatment of chronic pain. Its HF10 therapy is designed to deliver neuromodulation solutions for treating chronic pain. HF10 therapy enables patients to achieve sustained pain relief without paresthesia, thus enabling its patients to avoid the uncomfortable shocking or jolting sensations commonly associated with paresthesia. HF10 therapy relies on consistent anatomical lead placement. As of December 31, 2016, it was investigating the use of HF10 therapy to address additional indications, such as chronic upper limb and neck pain, painful neuropathies and non-surgical refractory back pain. The Senza system is approved to create electrical impulses from 2 hertz (Hz) to 10,000 Hz.

About LivaNova PLC

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.

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