Merit Medical Systems (NASDAQ:MMSI – Get Free Report) and Inspire Medical Systems (NYSE:INSP – Get Free Report) are both mid-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Valuation and Earnings
This table compares Merit Medical Systems and Inspire Medical Systems”s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Merit Medical Systems | $1.30 billion | 4.27 | $94.41 million | $1.74 | 54.90 |
Inspire Medical Systems | $705.71 million | 8.86 | -$21.15 million | ($0.55) | -382.65 |
Merit Medical Systems has higher revenue and earnings than Inspire Medical Systems. Inspire Medical Systems is trading at a lower price-to-earnings ratio than Merit Medical Systems, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Profitability
This table compares Merit Medical Systems and Inspire Medical Systems’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Merit Medical Systems | 9.02% | 15.29% | 8.58% |
Inspire Medical Systems | 0.85% | 1.03% | 0.88% |
Institutional and Insider Ownership
99.7% of Merit Medical Systems shares are held by institutional investors. Comparatively, 94.9% of Inspire Medical Systems shares are held by institutional investors. 3.7% of Merit Medical Systems shares are held by insiders. Comparatively, 4.1% of Inspire Medical Systems shares are held by 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 Ratings
This is a summary of current ratings and recommmendations for Merit Medical Systems and Inspire Medical Systems, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Merit Medical Systems | 0 | 2 | 9 | 1 | 2.92 |
Inspire Medical Systems | 0 | 5 | 9 | 0 | 2.64 |
Merit Medical Systems presently has a consensus target price of $101.82, suggesting a potential upside of 6.59%. Inspire Medical Systems has a consensus target price of $216.62, suggesting a potential upside of 2.92%. Given Merit Medical Systems’ stronger consensus rating and higher probable upside, research analysts plainly believe Merit Medical Systems is more favorable than Inspire Medical Systems.
Summary
Merit Medical Systems beats Inspire Medical Systems on 11 of the 14 factors compared between the two stocks.
About Merit Medical Systems
Merit Medical Systems, Inc. designs, develops, manufactures, and markets single-use medical products for interventional, diagnostic, and therapeutic procedures in the United States and internationally. It operates in two segments, Cardiovascular and Endoscopy. The company provides micropuncture kits, angiographic needles, sheaths, guide wires, and safety products; peripheral intervention, including angiography, drainage, delivery systems, and embolotherapy products; spine products, such as vertebral augmentation, radiofrequency ablation, and bone biopsy systems; oncology products; and cardiac intervention products, such as access, angiography, electrophysiology and cardiac rhythm management, fluid management, hemodynamic monitoring, hemostasis, and intervention to treat various heart conditions. It also offers custom procedural solutions that include critical care products, disinfection protection systems, syringes, manifold kits, and trays and packs; coating services for medical tubes and wires; and sensor components for microelectromechanical systems. In addition, the company provides pulmonary products that consist of laser-cut tracheobronchial stents, over-the-wire and direct visualization delivery systems, and dilation balloons to endoscopically dilate structures; gastroenterology products, such as covered esophageal stents, syringe and gauges, and balloon dilators; and kits and accessories for endoscopy and bronchoscopy procedures. It sells its products to hospitals and alternate site-based physicians, technicians, and nurses through direct sales force, distributors, original equipment manufacturer partners, or custom procedure tray manufacturers. The company was incorporated in 1987 and is headquartered in South Jordan, Utah.
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) in the United States and internationally. The company offers Inspire system, a neurostimulation technology that provides a safe and effective treatment for moderate to severe OSA. It also develops a novel, closed-loop solution that continuously monitors a patient's breathing and delivers mild hypoglossal nerve stimulation to maintain an open airway. The company was incorporated in 2007 and is headquartered in Golden Valley, Minnesota.
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