Contrasting LivaNova (NASDAQ:LIVN) & UFP Technologies (NASDAQ:UFPT)

UFP Technologies (NASDAQ:UFPT) and LivaNova (NASDAQ:LIVN) are both mid-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of current ratings and target prices for UFP Technologies and LivaNova, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UFP Technologies	0	2	0	0	2.00
LivaNova	0	5	6	0	2.55

LivaNova has a consensus target price of $84.12, suggesting a potential upside of 9.78%. Given LivaNova’s stronger consensus rating and higher possible upside, analysts clearly believe LivaNova is more favorable than UFP Technologies.

Earnings and Valuation

This table compares UFP Technologies and LivaNova”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UFP Technologies	$602.80 million	3.80	$68.31 million	$9.28	31.86
LivaNova	$1.39 billion	3.04	-$242.47 million	$3.38	22.67

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UFP Technologies	11.45%	18.42%	11.96%
LivaNova	12.82%	16.35%	7.76%

Risk & Volatility

UFP Technologies has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, LivaNova has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Institutional & Insider Ownership

87.3% of UFP Technologies shares are held by institutional investors. Comparatively, 97.6% of LivaNova shares are held by institutional investors. 4.6% of UFP Technologies shares are held by insiders. Comparatively, 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.

Summary

UFP Technologies beats LivaNova on 8 of the 14 factors compared between the two stocks.

About UFP Technologies

UFP Technologies, Inc. designs and manufactures solutions for medical devices, sterile packaging, and other highly engineered custom products. The company offers protective drapes for robotic surgery, single patient use surfaces, advanced wound care, infection prevention, disposables for surgical and endoscopic procedures, packaging for medical devices, orthopedic implants, biopharma drug manufacturing, and coils for catheters; and molded components for applications in acoustic insulation, interior trim, load floors, sunshades, SUV cargo cover handles, driveshaft damping, engine and manifold covers, quarter panels, and wheel liners. It also provides molded composites for commercial aviation and military gear for use in backpack components, knee and elbow pads, eyewear, and helmets; and reusable cases and custom for applications in military ballistics panels, virtual training systems, drones, communications equipment, and rugged portable computers. In addition, the company provides engineered products and components to customers in the automotive, aerospace and defense, and industrial markets for applications in military uniform and gear components, automotive interior trim, air filtration, and protective cases and inserts. It markets and sells its products through a direct sales force. The company was founded in 1963 and is headquartered in Newburyport, Massachusetts.

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.