Financial Review: LivaNova (NASDAQ:LIVN) versus NeurAxis (NASDAQ:NRXS)

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

Institutional and Insider Ownership

97.6% of LivaNova shares are held by institutional investors. Comparatively, 11.8% of NeurAxis shares are held by institutional investors. 0.3% of LivaNova shares are held by insiders. Comparatively, 15.2% of NeurAxis shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for LivaNova and NeurAxis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LivaNova	0	1	4	1	3.00
NeurAxis	0	0	0	0	N/A

LivaNova presently has a consensus price target of $70.80, suggesting a potential upside of 37.98%. Given LivaNova’s higher probable upside, equities analysts clearly believe LivaNova is more favorable than NeurAxis.

Valuation & Earnings

This table compares LivaNova and NeurAxis”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LivaNova	$1.21 billion	2.30	$17.55 million	($0.60)	-85.52
NeurAxis	$2.27 million	8.50	-$14.63 million	($3.73)	-0.78

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LivaNova	-1.37%	13.77%	7.07%
NeurAxis	-672.66%	N/A	-787.15%

Summary

LivaNova beats NeurAxis on 10 of the 13 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 NeurAxis

NeurAxis, Inc., a medical technology company, focuses on developing neuromodulation therapies to address chronic and debilitating conditions in children and adults in the United States. It offers IB-Stim, a percutaneous electrical nerve field stimulation system intended to be used in patients 11-18 years of age with functional abdominal pain associated with irritable bowel syndrome. The company sells its products to healthcare companies, including hospitals and clinics. The company was formerly known as Innovative Health Solutions, Inc. and changed its name to NeurAxis, Inc. in March 2022. The company was founded in 2011 and is headquartered in Carmel, Indiana.