Comparing InspireMD (NYSE:NSPR) & Boston Scientific (NYSE:BSX)

Boston Scientific (NYSE:BSX) and InspireMD (NYSE:NSPR) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.

Risk & Volatility

Boston Scientific has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, InspireMD has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Insider & Institutional Ownership

89.1% of Boston Scientific shares are held by institutional investors. Comparatively, 44.8% of InspireMD shares are held by institutional investors. 0.5% of Boston Scientific shares are held by company insiders. Comparatively, 21.6% of InspireMD shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Boston Scientific and InspireMD, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boston Scientific	0	2	18	1	2.95
InspireMD	0	0	1	0	3.00

Boston Scientific currently has a consensus target price of $74.27, suggesting a potential upside of 1.33%. InspireMD has a consensus target price of $4.85, suggesting a potential upside of 156.61%. Given InspireMD’s stronger consensus rating and higher probable upside, analysts plainly believe InspireMD is more favorable than Boston Scientific.

Profitability

This table compares Boston Scientific and InspireMD’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boston Scientific	11.19%	15.99%	8.87%
InspireMD	-320.97%	-55.71%	-46.53%

Valuation and Earnings

This table compares Boston Scientific and InspireMD’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boston Scientific	$14.24 billion	7.55	$1.59 billion	$1.07	68.50
InspireMD	$6.20 million	7.13	-$19.92 million	($1.08)	-1.75

Boston Scientific has higher revenue and earnings than InspireMD. InspireMD is trading at a lower price-to-earnings ratio than Boston Scientific, indicating that it is currently the more affordable of the two stocks.

Summary

Boston Scientific beats InspireMD on 11 of the 15 factors compared between the two stocks.

About Boston Scientific

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through two segments, MedSurg and Cardiovascular. The company offers devices to diagnose and treat gastrointestinal and pulmonary conditions, such as resolution clips, biliary stent systems, stents and electrocautery enhanced delivery systems, direct visualization systems, digital catheters, and single-use duodenoscopes; devices to treat urological conditions, including ureteral stents, catheters, baskets, guidewires, sheaths, balloons, single-use digital flexible ureteroscopes, holmium laser systems, artificial urinary sphincter, laser system, fiber, and hydrogel systems; and devices to treat neurological movement disorders and manage chronic pain, such as spinal cord stimulator system, proprietary programming software, radiofrequency generator, indirect decompression systems, practice optimization tools, and deep brain stimulation system. It also provides technologies for diagnosing and treating coronary artery disease and aortic valve conditions; WATCHMAN FLX, a Left Atrial Appendage Closure Device; and implantable devices that monitor the heart and deliver electricity to treat cardiac abnormalities, such as cardioverter and cardiac resynchronization therapy defibrillators, MRI S-ICD systems, cardiac resynchronization therapy pacemakers, quadripolar LV leads, ICD leads, pacing leads, remote patient management systems, insertable cardiac monitor systems, and remote cardiac monitoring systems. In addition, the company offers diagnosis and treatment of rate and rhythm disorders of the heart; peripheral arterial and venous diseases; and products to diagnose, treat and ease forms of cancer. The company was incorporated in 1979 and is headquartered in Marlborough, Massachusetts.

About InspireMD

InspireMD, Inc., a medical device company, focuses on the development and commercialization of MicroNet stent platform technology for the treatment of vascular and coronary diseases in Europe, Latin America, the Middle East, and Asia Pacific. The company offers CGuard carotid embolic prevention system (EPS) for use in carotid artery applications; CGuard Prime Stent System, a mesh-covered self-expanding carotid stent; and SwitchGuard NPS, a non-invasive transcarotid artery revascularization device; as well as treating acute stroke with tandem lesions. InspireMD, Inc. has a strategic agreement with Jacobs Institute to execute an early feasibility study of CGuard Prime for the treatment of acute stroke patients with tandem lesions. The company sells its products through local distribution partners. InspireMD, Inc. was founded in 2005 and is headquartered in Tel Aviv-Yafo, Israel.