Financial Survey: Olympus (OTCMKTS:OCPNY) & LivaNova (NASDAQ:LIVN)

LivaNova (NASDAQ:LIVN) and Olympus (OTCMKTS:OCPNY) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Insider & Institutional Ownership

97.6% of LivaNova shares are held by institutional investors. Comparatively, 0.0% of Olympus shares are held by institutional investors. 0.3% of LivaNova shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

LivaNova has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Olympus has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for LivaNova and Olympus, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LivaNova	0	4	6	1	2.73
Olympus	0	0	1	0	3.00

LivaNova presently has a consensus target price of $87.75, indicating a potential upside of 13.56%. Given LivaNova’s higher possible upside, analysts plainly believe LivaNova is more favorable than Olympus.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LivaNova	12.82%	16.35%	7.76%
Olympus	13.80%	24.30%	9.30%

Valuation & Earnings

This table compares LivaNova and Olympus”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LivaNova	$1.39 billion	3.07	-$242.47 million	$3.38	22.86
Olympus	$7.74 billion	2.99	$1.03 billion	$0.82	21.95

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

Summary

LivaNova beats Olympus on 9 of the 15 factors compared between the two stocks.

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.

About Olympus

Olympus Corp. engages in the manufacture and sale of precision machineries and instruments. It operates through the following segments: Medical, Scientific Solutions, Imaging, and Others. The Medical segment covers digestive, surgical, and ultrasonic endoscopy as well as endoscopic treatment tools. The Scientific Solutions segment manufactures and sells biological and industrial microscopes, industrial endoscopes, and non-destructive testing equipment. The Imaging segment deals with digital cameras and recording devices. The Others segment includes biomaterial manufacturing and sales business. The company was founded by Takeshi Yamashita on October 12, 1919 and is headquartered in Tokyo, Japan.