Critical Review: CryoLife (NYSE:CRY) & LeMaitre Vascular (LMAT)

CryoLife (NYSE: CRY) and LeMaitre Vascular (NASDAQ:LMAT) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Profitability

This table compares CryoLife and LeMaitre Vascular’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CryoLife -1.15% 4.55% 2.50%
LeMaitre Vascular 17.34% 16.66% 14.57%

Insider & Institutional Ownership

67.7% of CryoLife shares are owned by institutional investors. Comparatively, 72.5% of LeMaitre Vascular shares are owned by institutional investors. 4.0% of CryoLife shares are owned by insiders. Comparatively, 20.3% of LeMaitre Vascular shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares CryoLife and LeMaitre Vascular’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CryoLife $189.70 million 4.90 $3.70 million $0.40 63.50
LeMaitre Vascular $100.87 million 6.59 $17.17 million $0.86 40.00

LeMaitre Vascular has lower revenue, but higher earnings than CryoLife. LeMaitre Vascular is trading at a lower price-to-earnings ratio than CryoLife, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for CryoLife and LeMaitre Vascular, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CryoLife 0 0 3 0 3.00
LeMaitre Vascular 0 4 1 0 2.20

CryoLife currently has a consensus price target of $25.83, indicating a potential upside of 1.71%. LeMaitre Vascular has a consensus price target of $34.40, indicating a potential upside of 0.00%. Given CryoLife’s stronger consensus rating and higher possible upside, research analysts plainly believe CryoLife is more favorable than LeMaitre Vascular.

Dividends

LeMaitre Vascular pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. CryoLife does not pay a dividend. LeMaitre Vascular pays out 32.6% of its earnings in the form of a dividend.

Risk and Volatility

CryoLife has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, LeMaitre Vascular has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Summary

LeMaitre Vascular beats CryoLife on 9 of the 16 factors compared between the two stocks.

About CryoLife

CryoLife, Inc., together with its subsidiaries, manufactures, processes, and distributes medical devices and implantable human tissues for use in cardiac and vascular surgeries worldwide. The company operates in two segments, Medical Devices and Preservation Services. It offers BioGlue, an agent for cross-linking proteins for cardiac, vascular, pulmonary, and general surgical applications; On-X mechanical heart valves for aortic and mitral indications; cardiac preservation services; PhotoFix, a bovine pericardial patch for use in cardiac and vascular repairing activities; and PerClot, an absorbable powdered hemostat for use in surgical procedures, including cardiac, vascular, orthopedic, neurological, gynecological, ENT, and trauma surgeries. The company also provides cardiac laser therapy products, which include laser consoles, related service and maintenance, and single-use, as well as fiber-optic hand-pieces for the treatment of coronary artery disease in patients with severe angina. In addition, it distributes E-vita OPEN PLUS, a hybrid stent graft systems for the surgical and endovascular treatment; E-xtra DESIGN ENGINEERING products for the treatment of aortic vascular diseases; E-ventus BX, a balloon-expandable peripheral stent graft for the endovascular treatment of renal and pelvic arteries; E-liac, a stent graft used to treat aneurysmal iliac arteries, as well as aneurysmal iliac side branches; E-vita THORACIC 3G is a stent graft system for the endovascular treatment of thoracic aortic aneurysms; and E-tegra, an abdominal aortic aneurysms stent graft system for the endovascular treatment. Further, the company offers vascular preservation services; and synthetic vascular grafts for use in open aortic and peripheral vascular surgical procedures. The company serves physicians, hospitals, and other healthcare industries, as well as cardiac, vascular, thoracic, and general surgeons. CryoLife, Inc. was founded in 1984 and is headquartered in Kennesaw, Georgia.

About LeMaitre Vascular

LeMaitre Vascular, Inc. designs, markets, sells, services, and supports medical devices and implants for the treatment of peripheral vascular disease worldwide. The company offers angioscope, a fiber optic catheter used for viewing the lumen of a blood vessel; embolectomy catheters to remove blood clots from arteries or veins; occlusion catheters that temporarily occlude the blood flow; and perfusion catheters to temporarily perfuse the blood and other fluids into the vasculature. It also provides carotid shunts that temporarily shunt the blood to the brain during the removal of plaque from the carotid artery in a carotid endarterectomy surgery; powered phlebectomy devices to remove varicose veins; and radiopaque tape, a medical-grade tape applied to the skin that enables interventionists to cross-refer between the inside and the outside of a patient's body, and allows them to locate tributaries or lesions beneath the skin. In addition, the company offers remote endarterectomy devices to remove plaque from arteries in the leg; valvulotomes that cuts valves in the saphenous vein to function as an artery to carry blood past diseased arteries to the lower leg or the foot; and vascular grafts to bypass or replace diseased arteries. Further, it provides vascular patches, which are used for closure of vessels after surgical intervention, as well as endarterectomy and other vascular reconstruction; vessel closure systems to attach vessels to one another with titanium clips instead of sutures; and Reddick cholangiogram catheters to inject dye into the cystic duct during laparoscopic cholecystectomy, as well as laparoscopic accessory for use in laparoscopic gall bladder removal. LeMaitre Vascular, Inc. markets its products through a direct sales force and distributors. The company was formerly known as Vascutech, Inc. and changed its name to LeMaitre Vascular, Inc. in April 2001. LeMaitre Vascular, Inc. was founded in 1983 and is headquartered in Burlington, Massachusetts.

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