Critical Analysis: GE HealthCare Technologies (NASDAQ:GEHC) versus LeMaitre Vascular (NASDAQ:LMAT)

GE HealthCare Technologies (NASDAQ:GEHC – Get Free Report) and LeMaitre Vascular (NASDAQ:LMAT – Get Free Report) are both healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Insider & Institutional Ownership

82.1% of GE HealthCare Technologies shares are held by institutional investors. Comparatively, 84.6% of LeMaitre Vascular shares are held by institutional investors. 0.4% of GE HealthCare Technologies shares are held by company insiders. Comparatively, 7.4% of LeMaitre Vascular shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

GE HealthCare Technologies has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, LeMaitre Vascular has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for GE HealthCare Technologies and LeMaitre Vascular, as provided by MarketBeat.com.

GE HealthCare Technologies currently has a consensus price target of $78.39, suggesting a potential upside of 17.95%. LeMaitre Vascular has a consensus price target of $110.60, suggesting a potential upside of 33.43%. Given LeMaitre Vascular’s higher possible upside, analysts plainly believe LeMaitre Vascular is more favorable than GE HealthCare Technologies.

Dividends

GE HealthCare Technologies pays an annual dividend of $0.14 per share and has a dividend yield of 0.2%. LeMaitre Vascular pays an annual dividend of $1.00 per share and has a dividend yield of 1.2%. GE HealthCare Technologies pays out 3.2% of its earnings in the form of a dividend. LeMaitre Vascular pays out 35.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. GE HealthCare Technologies has raised its dividend for 1 consecutive years and LeMaitre Vascular has raised its dividend for 14 consecutive years. LeMaitre Vascular is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares GE HealthCare Technologies and LeMaitre Vascular’s net margins, return on equity and return on assets.

Earnings and Valuation

This table compares GE HealthCare Technologies and LeMaitre Vascular”s top-line revenue, earnings per share (EPS) and valuation.

GE HealthCare Technologies has higher revenue and earnings than LeMaitre Vascular. GE HealthCare Technologies is trading at a lower price-to-earnings ratio than LeMaitre Vascular, indicating that it is currently the more affordable of the two stocks.

Summary

LeMaitre Vascular beats GE HealthCare Technologies on 9 of the 17 factors compared between the two stocks.

About GE HealthCare Technologies

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GE HealthCare Technologies Inc. engages in the development, manufacture, and marketing of products, services, and complementary digital solutions used in the diagnosis, treatment, and monitoring of patients in the United States, Canada, and internationally. The company operates through four segments: Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics. The Imaging segment offers molecular imaging, computed tomography (CT) scanning, magnetic resonance (MR) imaging, image-guided therapy, X-ray systems, and women’s health products. The Ultrasound segment provides medical devices and solutions for screening, diagnosis, treatment, and monitoring of certain diseases in clinical areas, such as radiology and primary care, women’s health, cardiovascular, and point of care and handheld ultrasound solutions, as well as surgical visualization and guidance products. The Patient Care Solutions segment provides medical devices, consumables, services, and digital solutions. Its portfolio includes patient monitoring solutions, anesthesia delivery and respiratory care products, electrocardiogram solutions, maternal infant care products, and consumables and services. The Pharmaceutical Diagnostics supplies diagnostic agents, including CT, angiography and X-ray, MR, single-photon emission computed tomography, positron emission tomography, and ultrasound to the radiology and nuclear medicine industry. The segment also provides contrast media pharmaceuticals that are administered to a patient prior to certain diagnostic scans to increase the visibility of tissues or structures during imaging exams; and molecular imaging agents or radiopharmaceuticals, which are molecular tracers labeled with radioisotopes. It has an AI collaboration with Mass General Brigham. The company was formerly known as GE Healthcare Holding LLC and changed its name to GE HealthCare Technologies Inc. in December 2022. The company was incorporated in 2022 and is headquartered in Chicago, Illinois.

About LeMaitre Vascular

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LeMaitre Vascular, Inc. develops, manufactures, and markets medical devices and implants used in the field of vascular surgery worldwide. It offers human cadaver tissue cryopreservation services; angioscope, a fiberoptic catheter used for viewing the lumen of a blood vessel; embolectomy catheters to remove blood clots from arteries; thrombectomy catheters for removing thrombi in the venous system; occlusion catheters that temporarily occlude the blood flow; and perfusion catheters to perfuse the blood and other fluids into the vasculature. The company also provides artegraft biologic graft, a bovine carotid artery used for dialysis access; XenoSure biologic patches, used for closure of vessels after surgical intervention; VascuCel and CardioCel biologic patches, used in vessel repair, heart repair and reconstruction, and neonatal repairs; cardiovascular patches; carotid shunts that temporarily shunt the blood to the brain during the removal of plaque in a carotid endarterectomy surgery; biosynthetic vascular graft indicated for lower extremity bypass and dialysis access; and vascular grafts used to bypass or replace diseased arteries. In addition, it offers radiopaque tape, a medical-grade tape applied to the skin that enables surgeons and interventionalists to cross-refer between the inside and the outside of a patient’s body and allows them to locate tributaries or lesions beneath the skin. Further, the company provides valvulotomes, which cut or disrupt valves in the saphenous vein to function as an artery to carry blood past diseased arteries to the lower leg or the foot; and closure systems to attach vessels to one another with titanium clips instead of sutures. It markets its products through a direct sales force and distributors. The company was formerly known as Vascutech, Inc. and changed its name to LeMaitre Vascular, Inc. in April 2001. LeMaitre Vascular, Inc. was incorporated in 1983 and is headquartered in Burlington, Massachusetts.