Analyzing Livongo Health (NASDAQ:LVGO) & Catasys (NASDAQ:CATS)

Livongo Health (NASDAQ:LVGO) and Catasys (NASDAQ:CATS) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.

Institutional and Insider Ownership

13.3% of Catasys shares are owned by institutional investors. 60.8% of Catasys shares are owned 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.

Profitability

This table compares Livongo Health and Catasys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Livongo Health N/A N/A N/A
Catasys -58.01% N/A -193.62%

Earnings and Valuation

This table compares Livongo Health and Catasys’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Livongo Health N/A N/A N/A N/A N/A
Catasys $15.18 million 16.78 -$14.21 million ($0.89) -17.64

Livongo Health has higher earnings, but lower revenue than Catasys.

Analyst Ratings

This is a breakdown of recent ratings for Livongo Health and Catasys, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Livongo Health 0 1 0 0 2.00
Catasys 0 0 3 0 3.00

Livongo Health currently has a consensus price target of $40.00, suggesting a potential upside of 8.73%. Catasys has a consensus price target of $21.00, suggesting a potential upside of 33.76%. Given Catasys’ stronger consensus rating and higher possible upside, analysts plainly believe Catasys is more favorable than Livongo Health.

Summary

Catasys beats Livongo Health on 6 of the 8 factors compared between the two stocks.

About Livongo Health

Livongo Health, Inc. provides an integrated suite of solutions for the healthcare industry in North America. It solutions promote health behavior change based on real-time data capture supported by intuitive devices and insights driven by data science. The company offers a platform that provides cellular-connected devices, supplies, informed coaching, data science-enabled insights, and facilitates access to medications. Its products include Livongo for Diabetes, Livongo for Hypertension, Livongo for Prediabetes and Weight Management, and Livongo for Behavioral Health by myStrength. The company was formerly known as EosHealth, Inc. and changed its name to Livongo Health, Inc. in 2014. Livongo Health, Inc. was incorporated in 2008 and is headquartered in Mountain View, California.

About Catasys

Catasys, Inc. provides big data predictive analytics, artificial intelligence and telehealth, combined with human intervention services to health plans and other third party payors. It offers OnTrak solution to improve treatment outcomes and lower the utilization of medical and behavioral health plan services. The company's OnTrak solution includes medical and psychosocial interventions; and a proprietary Web based clinical information platform and database, psychosocial programs, and integrated care coaching services. Its OnTrak solution combines medical and psychosocial treatments with elements of traditional disease management, case management, and ongoing member support to help organizations treat and manage populations struggling with substance dependence, depression, and anxiety to improve their health and thereby decrease their health care costs. Catasys, Inc.'s OnTrak solution includes various components, such as identification of impactable members, member engagement, enrollment/referral, provider network, outpatient medical treatment, outpatient psychosocial treatment, care coaching, monitoring and reporting, and proprietary Web-based clinical information platform. The company was formerly known as Hythiam, Inc. and changed its name to Catasys, Inc. in March 2011. Catasys, Inc. was founded in 2000 and is based in Los Angeles, California.

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