Head to Head Contrast: LivaNova (LIVN) and Cutera (CUTR)

LivaNova (NASDAQ:LIVN) and Cutera (NASDAQ:CUTR) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Risk and Volatility

LivaNova has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Cutera has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
LivaNova -17.11% 9.64% 6.35%
Cutera -18.91% -48.46% -27.95%

Earnings & Valuation

This table compares LivaNova and Cutera’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LivaNova $1.11 billion 2.92 -$189.40 million $3.17 21.13
Cutera $162.72 million 1.43 -$30.77 million ($2.23) -7.43

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for LivaNova and Cutera, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LivaNova 0 2 3 0 2.60
Cutera 0 2 2 0 2.50

LivaNova presently has a consensus target price of $113.75, indicating a potential upside of 69.80%. Cutera has a consensus target price of $34.67, indicating a potential upside of 109.21%. Given Cutera’s higher possible upside, analysts clearly believe Cutera is more favorable than LivaNova.

Institutional & Insider Ownership

89.6% of LivaNova shares are owned by institutional investors. Comparatively, 94.0% of Cutera shares are owned by institutional investors. 0.4% of LivaNova shares are owned by insiders. Comparatively, 1.8% of Cutera shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

LivaNova beats Cutera on 10 of the 14 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 in two segments, Cardiac Surgery and Neuromodulation. The Cardiac Surgery segment develops, produces, and sells cardiopulmonary products, including oxygenators, heart-lung machines, perfusion tubing systems, cannulae and accessories for extracorporeal circulation, and systems for autotransfusion and autologous blood washing, as well as surgical tissue and mechanical heart valve replacements, and repair products for damaged or diseased heart valves. The Neuromodulation segment designs, develops, and markets VNS Therapy System, an implantable device that delivers vagus nerve stimulation (VNS) therapy for the treatment of drug-resistant epilepsy and treatment-resistant depression. The company's product portfolio also includes various strategic portfolio initiatives, such as transcatheter mitral valve replacement, an implant device for the treatment of mitral regurgitation through the replacement of native mitral valve; VITARIA to treat heart failure through VNS; and ANTHEM-HFpEF to study autonomic regulation therapy in patients experiencing symptomatic heart failure with preserved ejection fraction, as well as treatment resistant depression. The company serves perfusionists, neurologists, neurosurgeons, and other physicians, as well as hospitals, other medical institutions, and healthcare providers. It sells its products through direct sales representatives and independent distributors. LivaNova PLC was founded in 1987 and is headquartered in London, the United Kingdom.

About Cutera

Cutera, Inc., a medical device company, designs, develops, manufactures, markets, and services laser and other energy based aesthetics systems worldwide. The company offers enlighten platform, a laser system that is used for tattoo removal, as well as for the treatment of benign pigmented lesions; excel HR platform, a hair removal solution for various skin types; and truSculpt, a high-powered radio frequency platform designed for deep tissue heating. It also provides excel V, a vascular and benign pigmented lesion treatment platform; xeo platform, a multi-application platform on which a customer purchases hand piece applications for the removal of unwanted hair, treatment of vascular lesions, and skin rejuvenation by treating discoloration, fine lines, and laxity; Juliet, a laser system for vaginal health; and Secret RF, a fractional radio frequency microneedling device for skin rejuvenation. In addition, the company offers GenesisPlus system, a laser product for use in the temporary increase of clear nails in patients with onychomycosis, as well as for the treatment of fine wrinkles, diffuse redness, and rosacea; and CoolGlide, as well as myQ, a third-party sourced system for the Japanese market. Further, it provides pulsed light hand pieces for the treatment of discoloration, hair removal, and vascular treatments; Pearl and Pearl Fractional hand pieces; and post-warranty services through extended service contracts or direct billing, as well as offers Titan hand piece refills and marketing brochures through the Internet. The company markets and sells its products through direct sales force to plastic surgeons, dermatologists, gynecologists, family practitioners, primary care physicians, physicians performing aesthetic treatments in non-medical offices, and other qualified practitioners, as well as for physicians offering aesthetic treatments in non-medical offices. Cutera, Inc. was founded in 1998 and is headquartered in Brisbane, California.

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