Inspire Medical Systems (NYSE:INSP) and GenMark Diagnostics (NASDAQ:GNMK) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.
Volatility & Risk
Inspire Medical Systems has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500. Comparatively, GenMark Diagnostics has a beta of 3.02, suggesting that its share price is 202% more volatile than the S&P 500.
Institutional and Insider Ownership
96.3% of Inspire Medical Systems shares are owned by institutional investors. Comparatively, 96.9% of GenMark Diagnostics shares are owned by institutional investors. 6.6% of Inspire Medical Systems shares are owned by company insiders. Comparatively, 3.3% of GenMark Diagnostics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Inspire Medical Systems and GenMark Diagnostics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Inspire Medical Systems | -61.07% | -32.23% | -26.42% |
| GenMark Diagnostics | -16.95% | -39.36% | -13.02% |
Analyst Ratings
This is a summary of current ratings and recommmendations for Inspire Medical Systems and GenMark Diagnostics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Inspire Medical Systems | 0 | 3 | 7 | 0 | 2.70 |
| GenMark Diagnostics | 0 | 5 | 0 | 0 | 2.00 |
Inspire Medical Systems presently has a consensus price target of $168.5455, suggesting a potential downside of 27.18%. GenMark Diagnostics has a consensus price target of $22.0125, suggesting a potential downside of 8.32%. Given GenMark Diagnostics' higher possible upside, analysts plainly believe GenMark Diagnostics is more favorable than Inspire Medical Systems.
Valuation and Earnings
This table compares Inspire Medical Systems and GenMark Diagnostics' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Inspire Medical Systems | $82.05 million | 76.64 | $-33,240,000.00 | ($1.40) | -165.33 |
| GenMark Diagnostics | $88.02 million | 19.94 | $-47,350,000.00 | ($0.82) | -29.28 |
Inspire Medical Systems has higher earnings, but lower revenue than GenMark Diagnostics. Inspire Medical Systems is trading at a lower price-to-earnings ratio than GenMark Diagnostics, indicating that it is currently the more affordable of the two stocks.
Summary
GenMark Diagnostics beats Inspire Medical Systems on 8 of the 14 factors compared between the two stocks.
