Livongo Health (NASDAQ:LVGO) and The Trade Desk (NASDAQ:TTD) are both large-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.
Profitability
This table compares Livongo Health and The Trade Desk's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Livongo Health | -12.20% | 0.29% | 0.21% |
| The Trade Desk | 17.57% | 18.10% | 6.91% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Livongo Health and The Trade Desk, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Livongo Health | 0 | 6 | 10 | 0 | 2.63 |
| The Trade Desk | 0 | 8 | 7 | 0 | 2.47 |
Livongo Health currently has a consensus price target of $110.9375, indicating a potential downside of 20.63%. The Trade Desk has a consensus price target of $564.50, indicating a potential downside of 34.53%. Given Livongo Health's stronger consensus rating and higher possible upside, equities research analysts clearly believe Livongo Health is more favorable than The Trade Desk.
Valuation and Earnings
This table compares Livongo Health and The Trade Desk's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Livongo Health | $170.20 million | 83.42 | $-55,270,000.00 | ($1.01) | -138.39 |
| The Trade Desk | $661.06 million | 61.26 | $108.32 million | $2.27 | 379.85 |
The Trade Desk has higher revenue and earnings than Livongo Health. Livongo Health is trading at a lower price-to-earnings ratio than The Trade Desk, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Livongo Health has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500. Comparatively, The Trade Desk has a beta of 2.44, meaning that its stock price is 144% more volatile than the S&P 500.
Institutional and Insider Ownership
41.7% of Livongo Health shares are owned by institutional investors. Comparatively, 71.7% of The Trade Desk shares are owned by institutional investors. 13.0% of Livongo Health shares are owned by insiders. Comparatively, 13.1% of The Trade Desk shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
The Trade Desk beats Livongo Health on 10 of the 14 factors compared between the two stocks.
