AtriCure (NASDAQ: ATRC) and LivaNova (NASDAQ:LIVN) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitability.

Risk and Volatility

AtriCure has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, LivaNova has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for AtriCure and LivaNova, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AtriCure 0 1 6 0 2.86
LivaNova 1 2 4 0 2.43

AtriCure presently has a consensus target price of $24.67, suggesting a potential upside of 34.64%. LivaNova has a consensus target price of $78.17, suggesting a potential downside of 2.69%. Given AtriCure’s stronger consensus rating and higher probable upside, equities analysts plainly believe AtriCure is more favorable than LivaNova.

Profitability

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

Net Margins Return on Equity Return on Assets
AtriCure -19.40% -20.28% -12.20%
LivaNova 4.63% 9.33% 6.82%

Earnings and Valuation

This table compares AtriCure and LivaNova’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AtriCure $155.11 million 4.07 -$33.33 million ($1.02) -17.96
LivaNova $1.21 billion 3.19 -$62.78 million $1.17 68.66

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

Insider & Institutional Ownership

86.2% of AtriCure shares are held by institutional investors. Comparatively, 86.1% of LivaNova shares are held by institutional investors. 10.0% of AtriCure shares are held by insiders. Comparatively, 0.3% of LivaNova shares are held 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.

Summary

AtriCure beats LivaNova on 8 of the 13 factors compared between the two stocks.

About AtriCure

AtriCure, Inc. is an atrial fibrillation (Afib) solutions company. The Company develops, manufactures, and sells devices designed primarily for the surgical ablation of cardiac tissue and systems designed for the exclusion of the left atrial appendage. It has various product lines for the ablation of cardiac tissue, including its Isolator Synergy Ablation System, for the treatment of persistent and longstanding persistent forms of Afib in patients undergoing certain open concomitant procedures. It has two primary product lines for cardiac tissue ablation, which include Radio Frequency Ablation Devices and cryoICE Cryoablation System, and a product line for left atrial appendage exclusion. The Company also sells Lumitip dissectors and the Estech line of reusable cardiac surgery (valve) instruments. Its cryoICE cryosurgery product line offers various cryoablation devices. Its AtriClip Left Atrial Appendage Exclusion System is designed to occlude the heart’s left atrial appendage (LAA).

About LivaNova

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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