Integer (NYSE:ITGR) & LivaNova (NASDAQ:LIVN) Critical Comparison

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Integer	$1.60 billion	2.59	$90.65 million	$2.69	45.85
LivaNova	$1.15 billion	2.62	$17.55 million	$0.32	174.82

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

Volatility and Risk

Integer has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, LivaNova has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Integer	5.68%	10.80%	5.48%
LivaNova	1.53%	12.23%	6.47%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Integer	0	2	4	0	2.67
LivaNova	0	3	2	0	2.40

Integer currently has a consensus price target of $120.50, indicating a potential downside of 2.30%. LivaNova has a consensus price target of $64.40, indicating a potential upside of 15.12%. Given LivaNova’s higher probable upside, analysts clearly believe LivaNova is more favorable than Integer.

Insider and Institutional Ownership

99.3% of Integer shares are owned by institutional investors. Comparatively, 97.6% of LivaNova shares are owned by institutional investors. 2.0% of Integer shares are owned by company insiders. Comparatively, 0.2% of LivaNova shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Integer beats LivaNova on 9 of the 14 factors compared between the two stocks.

About Integer

Integer Holdings Corporation operates as a medical device outsource manufacturer in the United States, Puerto Rico, Costa Rica, and internationally. It operates through two segments, Medical and Non-Medical. The company offers products for interventional cardiology, structural heart, heart failure, peripheral vascular, neurovascular, interventional oncology, electrophysiology, vascular access, infusion therapy, hemodialysis, non-vascular, urology, and gastroenterology procedures. It also provides cardiac rhythm management products, including implantable pacemakers, implantable cardioverter defibrillators, insertable cardiac monitors, implantable cardiac pacing and defibrillation leads, and heart failure therapies; neuromodulation products, such as implantable spinal cord stimulators; and non-rechargeable batteries, feedthroughs, device enclosures, machined components, and lead components and sub-assemblies. In addition, the company offers rechargeable batteries and chargers; and arthroscopic, laparoscopic, and general surgery devices and components, such as harmonic scalpels, shaver blades, burr shavers, radio frequency probes, biopsy probes, trocars, electrocautery components, wound dressings, GERD treatment components, and phacoemulsification needles. Further, it provides orthopedic products that include instruments used in hip, knee, and spine surgeries, as well as reamers and chisels. Additionally, the company offers customized battery power and power management systems, and battery solutions for the energy, military, and environmental markets. Furthermore, the company provides medical technologies. It serves multi-national original equipment manufacturers and their affiliated subsidiaries in the cardiac rhythm management, neuromodulation, orthopedics, vascular, and advanced surgical and portable medical markets. Integer Holdings Corporation was founded in 1970 and is headquartered in Plano, Texas.

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.