Head to Head Survey: LDR (LDRH) vs. SurModics (SRDX)

LDR (NASDAQ: LDRH) and SurModics (NASDAQ:SRDX) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.

Institutional and Insider Ownership

85.0% of SurModics shares are owned by institutional investors. 7.7% of SurModics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares LDR and SurModics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LDR N/A N/A N/A ($0.71) -52.08
SurModics $73.11 million 5.29 $3.92 million $0.29 101.03

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

Profitability

This table compares LDR and SurModics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LDR -18.02% -16.37% -13.65%
SurModics 5.37% 6.18% 5.11%

Analyst Recommendations

This is a breakdown of current ratings and price targets for LDR and SurModics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LDR 0 0 0 0 N/A
SurModics 0 0 2 0 3.00

SurModics has a consensus price target of $40.00, indicating a potential upside of 36.52%. Given SurModics’ higher probable upside, analysts clearly believe SurModics is more favorable than LDR.

Summary

SurModics beats LDR on 10 of the 10 factors compared between the two stocks.

About LDR

LDR Holding Corporation is a medical device company. The Company focuses on designing and commercializing surgical technologies for the treatment of patients suffering from spine disorders. The Company’s primary products are based on its VerteBRIDGE fusion and Mobi non-fusion platforms, both of which are designed for applications in the cervical and lumbar spine. The Company’s VerteBRIDGE products are designed around its plating technology that enables surgeons to implant VerteBRIDGE devices with direct visualization of the disc and to affix the devices to the vertebrae from inside the spinal disc space. The Company’s Mobi non-fusion platform is underlined by Mobi-C, a cervical disc replacement device with a mobile bearing core that is designed to replicate the natural anatomical movement of the spine by facilitating independent bending and twisting similar to a healthy disc. The Company’s traditional fusion products include Easyspine, MC+, ROI, ROI-T, SpineTune and C-Plate.

About SurModics

Surmodics, Inc. is a provider of medical device and in vitro diagnostic technologies to the healthcare industry. The Company operates through two segments: Medical Device and In Vitro Diagnostics. The Company’s Medical Device segment consists of surface modification coating technologies to improve access, deliverability and predictable deployment of medical devices; international cardiology and peripheral balloon design, development and manufacturing, as well as drug delivery coating technologies to provide site-specific drug delivery from the surface of a medical device. The Company’s In Vitro Diagnostics segment manufactures or sells components for in vitro diagnostic immunoassay and molecular tests. The In Vitro Diagnostics segment manufactures and sells surface coatings to the diagnostic, biomedical research and life science markets. In Vitro Diagnostics segment offers protein stabilization reagents, substrates, antigens and surface coatings.

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