Lombard Medical (NASDAQ: EVAR) and Nevro Corp. (NYSE:NVRO) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations for Lombard Medical and Nevro Corp., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lombard Medical 0 0 0 0 N/A
Nevro Corp. 0 1 6 0 2.86

Nevro Corp. has a consensus target price of $100.57, indicating a potential upside of 34.51%. Given Nevro Corp.’s higher possible upside, analysts plainly believe Nevro Corp. is more favorable than Lombard Medical.

Profitability

This table compares Lombard Medical and Nevro Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lombard Medical -320.50% -195.04% -46.78%
Nevro Corp. -14.09% -17.27% -9.88%

Institutional & Insider Ownership

40.2% of Lombard Medical shares are held by institutional investors. 12.1% of Nevro Corp. shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Lombard Medical and Nevro Corp.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Lombard Medical $12.17 million 0.34 -$31.03 million ($1.54) -0.10
Nevro Corp. $228.50 million 9.70 -$31.77 million ($1.45) -51.57

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

Volatility and Risk

Lombard Medical has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, Nevro Corp. has a beta of -0.7, indicating that its share price is 170% less volatile than the S&P 500.

Summary

Nevro Corp. beats Lombard Medical on 9 of the 12 factors compared between the two stocks.

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.

About Nevro Corp.

Nevro Corp. is a global medical device company. The Company focuses on providing products that improve the quality of life of patients suffering from chronic pain. The Company has developed and commercialized the Senza spinal cord stimulation (SCS) system, an evidence-based neuromodulation platform for the treatment of chronic pain. Its HF10 therapy is designed to deliver neuromodulation solutions for treating chronic pain. HF10 therapy enables patients to achieve sustained pain relief without paresthesia, thus enabling its patients to avoid the uncomfortable shocking or jolting sensations commonly associated with paresthesia. HF10 therapy relies on consistent anatomical lead placement. As of December 31, 2016, it was investigating the use of HF10 therapy to address additional indications, such as chronic upper limb and neck pain, painful neuropathies and non-surgical refractory back pain. The Senza system is approved to create electrical impulses from 2 hertz (Hz) to 10,000 Hz.

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