Critical Survey: Kewaunee Scientific (NASDAQ:KEQU) versus LivaNova (NASDAQ:LIVN)

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for LivaNova and Kewaunee Scientific, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LivaNova	0	4	7	0	2.64
Kewaunee Scientific	0	1	0	0	2.00

LivaNova presently has a consensus target price of $87.75, indicating a potential upside of 16.54%. Given LivaNova’s stronger consensus rating and higher probable upside, research analysts clearly believe LivaNova is more favorable than Kewaunee Scientific.

Volatility & Risk

LivaNova has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Kewaunee Scientific has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Insider & Institutional Ownership

97.6% of LivaNova shares are owned by institutional investors. Comparatively, 32.7% of Kewaunee Scientific shares are owned by institutional investors. 0.3% of LivaNova shares are owned by insiders. Comparatively, 14.1% of Kewaunee Scientific shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares LivaNova and Kewaunee Scientific’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%
Kewaunee Scientific	2.97%	11.61%	4.82%

Earnings and Valuation

This table compares LivaNova and Kewaunee Scientific”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LivaNova	$1.39 billion	2.99	-$242.47 million	$3.38	22.28
Kewaunee Scientific	$282.00 million	0.35	$9.62 million	$2.76	12.36

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

Summary

LivaNova beats Kewaunee Scientific on 12 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 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 Kewaunee Scientific

Kewaunee Scientific Corporation designs, manufactures, and installs laboratory, healthcare, and technical furniture and infrastructure products. The company operates through two segments, Domestic and International. Its products include steel and wood casework, fume hoods, adaptable modular systems, moveable workstations, stand-alone benches, biological safety cabinets, and epoxy resin work surfaces and sinks. The company's laboratory products are used in chemistry, physics, biology, and other general science laboratories in the pharmaceutical, biotechnology, industrial, chemical, commercial, educational, government, and health care markets; and technical products are used in facilities manufacturing computers and light electronics and by users of computer and networking furniture. It sells its products primarily through dealers, its subidiaries, and a national distributor. The company was founded in 1906 and is headquartered in Statesville, North Carolina.