Analyzing Integer (NYSE:ITGR) & LivaNova (NASDAQ:LIVN)

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

Analyst Ratings

This is a summary of current ratings and target prices for Integer and LivaNova, as reported by MarketBeat.

	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 plainly believe LivaNova is more favorable than Integer.

Insider & Institutional Ownership

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

Earnings and Valuation

This table compares Integer and LivaNova’s revenue, earnings per share 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.

Risk and Volatility

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

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.