Analyzing LivaNova (NASDAQ:LIVN) & QuidelOrtho (NASDAQ:QDEL)
by Sarita Garza · The Markets DailyLivaNova (NASDAQ:LIVN – Get Free Report) and QuidelOrtho (NASDAQ:QDEL – Get Free Report) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.
Valuation & Earnings
This table compares LivaNova and QuidelOrtho”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LivaNova | $1.39 billion | 3.12 | -$242.47 million | $3.38 | 23.22 |
| QuidelOrtho | $2.67 billion | 0.36 | -$1.13 billion | ($15.41) | -0.90 |
LivaNova has higher earnings, but lower revenue than QuidelOrtho. QuidelOrtho is trading at a lower price-to-earnings ratio than LivaNova, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
LivaNova has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, QuidelOrtho has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.
Profitability
This table compares LivaNova and QuidelOrtho’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LivaNova | 12.82% | 16.35% | 7.76% |
| QuidelOrtho | -39.20% | 4.88% | 1.63% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for LivaNova and QuidelOrtho, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LivaNova | 0 | 4 | 6 | 1 | 2.73 |
| QuidelOrtho | 2 | 4 | 0 | 0 | 1.67 |
LivaNova presently has a consensus target price of $87.75, suggesting a potential upside of 11.78%. QuidelOrtho has a consensus target price of $13.62, suggesting a potential downside of 2.05%. Given LivaNova’s stronger consensus rating and higher probable upside, analysts clearly believe LivaNova is more favorable than QuidelOrtho.
Institutional & Insider Ownership
97.6% of LivaNova shares are held by institutional investors. Comparatively, 99.0% of QuidelOrtho shares are held by institutional investors. 0.3% of LivaNova shares are held by insiders. Comparatively, 1.1% of QuidelOrtho shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
LivaNova beats QuidelOrtho on 12 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 QuidelOrtho
QuidelOrtho Corporation provides diagnostic testing solutions. The company operates through Labs, Transfusion Medicine, Point-of-Care, and Molecular Diagnostics business units. The Labs business unit provides clinical chemistry laboratory instruments and tests that measure target chemicals in bodily fluids for the evaluation of health and the clinical management of patients; immunoassay laboratory instruments and tests, which measure proteins as they act as antigens in the spread of disease, antibodies in the immune response spurred by disease, or markers of proper organ function and health; testing products to detect and monitor disease progression across a spectrum of therapeutic areas; and specialized diagnostic solutions. The Transfusion Medicine business unit offers immunohematology instruments and tests used for blood typing to ensure patient-donor compatibility in blood transfusions; and donor screening instruments and tests used for blood and plasma screening for infectious diseases. The Point-of-Care business unit provides instruments and tests to provide rapid results across a continuum of point-of-care settings. The Molecular Diagnostics business unit offers polymerase chain reaction thermocyclers; amplification systems; and sample-to-result molecular instruments and tests for syndromic infectious disease diagnostics. The company sells its products directly to end users through a direct sales force; and through a network of distributors for professional use in physician offices, hospitals, clinical laboratories, reference laboratories, urgent care clinics, universities, retail clinics, pharmacies, wellness screening centers, blood banks, and donor centers, as well as for individual, non-professional, and over-the-counter use. It operates in North America, Europe, the Middle East, Africa, China, and internationally. The company was incorporated in 1979 and is headquartered in San Diego, California.