Inspire Medical Systems (NYSE:INSP) and Cardiovascular Systems (NASDAQ:CSII) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Volatility and Risk

Inspire Medical Systems has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Cardiovascular Systems has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Inspire Medical Systems and Cardiovascular Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inspire Medical Systems 1 3 9 0 2.62
Cardiovascular Systems 0 0 8 0 3.00

Inspire Medical Systems presently has a consensus target price of $109.85, suggesting a potential downside of 14.14%. Cardiovascular Systems has a consensus target price of $46.75, suggesting a potential upside of 33.92%. Given Cardiovascular Systems’ stronger consensus rating and higher possible upside, analysts clearly believe Cardiovascular Systems is more favorable than Inspire Medical Systems.

Valuation and Earnings

This table compares Inspire Medical Systems and Cardiovascular Systems’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Inspire Medical Systems $82.05 million 41.79 -$33.24 million ($1.40) -91.39
Cardiovascular Systems $236.54 million 5.85 -$27.24 million ($0.79) -44.19

Cardiovascular Systems has higher revenue and earnings than Inspire Medical Systems. Inspire Medical Systems is trading at a lower price-to-earnings ratio than Cardiovascular Systems, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

90.6% of Cardiovascular Systems shares are held by institutional investors. 6.6% of Inspire Medical Systems shares are held by insiders. Comparatively, 3.0% of Cardiovascular Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Inspire Medical Systems and Cardiovascular Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Inspire Medical Systems -69.69% -35.04% -28.28%
Cardiovascular Systems -11.51% -15.62% -10.89%

Summary

Cardiovascular Systems beats Inspire Medical Systems on 10 of the 14 factors compared between the two stocks.

About Inspire Medical Systems

Inspire Medical Systems, Inc., a medical technology company, focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea (OSA). It offers Inspire system, a neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea. The company was founded in 2007 and is headquartered in Maple Grove, Minnesota.

About Cardiovascular Systems

Cardiovascular Systems, Inc., a medical device company, develops, manufactures, and commercializes various devices to treat vascular and coronary diseases in the United States. The company offers peripheral arterial disease products, including Diamondback 360 Peripheral, Predator 360, Stealth 360 Peripheral Orbital Atherectomy System (OAS), Diamondback 360 60cm Peripheral OAS, Diamondback 360 Low Profile Peripheral, Diamondback 360 1.50 Peripheral, Diamondback 360 2.00 Peripheral, Diamondback 360 200cm Peripheral, and Diamondback 360 180cm Peripheral, which are catheter-based platforms for treating a range of plaque types in leg arteries above and below the knee, including calcified plaque, as well as address various limitations associated with surgical, catheter, and pharmacological treatment alternatives. It also provides Diamondback 360 Coronary OAS, an atherectomy device for the treatment of calcified coronary arteries. Cardiovascular Systems, Inc. was founded in 1989 and is headquartered in St. Paul, Minnesota.

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