Financial Analysis: Livongo Health (NASDAQ:LVGO) and Catasys (NASDAQ:CATS)

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

Analyst Ratings

This is a summary of current recommendations and price targets for Livongo Health and Catasys, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Livongo Health 0 1 9 0 2.90
Catasys 0 0 3 0 3.00

Livongo Health currently has a consensus target price of $44.20, suggesting a potential upside of 85.25%. Catasys has a consensus target price of $21.00, suggesting a potential upside of 18.71%. Given Livongo Health’s higher probable upside, research analysts plainly believe Livongo Health is more favorable than Catasys.

Insider & Institutional Ownership

19.2% of Catasys shares are owned by institutional investors. 60.8% of Catasys shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

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 -149.25%

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Livongo Health $68.43 million 32.93 -$33.38 million N/A N/A
Catasys $15.18 million 19.29 -$14.21 million ($0.89) -19.88

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

Summary

Livongo Health beats Catasys on 6 of the 10 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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