Lombard Medical (EVAR) & K2M Group Holdings (KTWO) Financial Review

K2M Group Holdings (NASDAQ: KTWO) and Lombard Medical (NASDAQ:EVAR) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Insider & Institutional Ownership

98.9% of K2M Group Holdings shares are owned by institutional investors. Comparatively, 40.2% of Lombard Medical shares are owned by institutional investors. 5.8% of K2M Group Holdings shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

K2M Group Holdings has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Lombard Medical has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for K2M Group Holdings and Lombard Medical, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
K2M Group Holdings 0 0 9 0 3.00
Lombard Medical 0 0 0 0 N/A

K2M Group Holdings presently has a consensus price target of $25.25, indicating a potential upside of 27.40%. Given K2M Group Holdings’ higher probable upside, research analysts clearly believe K2M Group Holdings is more favorable than Lombard Medical.

Profitability

This table compares K2M Group Holdings and Lombard Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
K2M Group Holdings -16.21% -15.45% -10.50%
Lombard Medical N/A N/A N/A

Earnings and Valuation

This table compares K2M Group Holdings and Lombard Medical’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
K2M Group Holdings $248.68 million 3.45 -$2.00 million ($0.96) -20.65
Lombard Medical $12.17 million 0.85 -$24.22 million ($1.54) -0.24

K2M Group Holdings has higher revenue and earnings than Lombard Medical. K2M Group Holdings is trading at a lower price-to-earnings ratio than Lombard Medical, indicating that it is currently the more affordable of the two stocks.

Summary

K2M Group Holdings beats Lombard Medical on 9 of the 12 factors compared between the two stocks.

About K2M Group Holdings

K2M Group Holdings, Inc. is a medical device company focused on designing, developing and commercializing spine and minimally invasive technologies and techniques. The Company’s solutions are focused on achieving three-dimensional Total Body Balance. Its spine products are used by spine surgeons to treat spinal pathologies, such as deformity (primarily scoliosis), trauma and tumor. Its products consist of implants, disposables and instruments, which are marketed and sold primarily to hospitals for use by spine surgeons. As of December 31, 2016, its product portfolio consisted of 83 product lines that are used in complex spine, minimally invasive surgery (MIS) and degenerative surgeries. Its technologies include EVEREST, MESA, Rail 4D, Quicket Deformity, CASCADIA, CAPRI, SERENGETI, RAVINE and tifix. Its degenerative spine technologies are used to treat degenerative spine disorders and include products, such as cervical, thoracic and lumbar spinal fusion devices and interbody devices.

About Lombard Medical

Lombard Medical, Inc. is a medical technology company. The Company specializes in developing, manufacturing, and marketing endovascular stent-grafts that address medical needs in the repair of aortic aneurysms. The Company’s Aorfix is an abdominal aortic aneurysm (AAA) stent-graft for the treatment of AAAs with angulation at the neck of the aneurysm of over 90 degrees. The Company supplies Aorfix pre-loaded into a delivery system, Aorflex, which is designed for accurate placement of Aorfix in the abdominal aorta. Once Aorfix is properly placed within the abdominal aorta, it provides a conduit for blood flow, thereby relieving pressure within the weakened or aneurysmal section of the vessel wall, which reduces the potential for the AAA to rupture. It also offers IntelliFlex, which is a delivery system technology created for Aorfix AAA stent graft, and Altura Endovascular Stent Graft System that offers a simple and predictable solution to the treatment of standard AAA anatomies.

Receive News & Ratings for K2M Group Holdings Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for K2M Group Holdings Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply