Penumbra (NYSE:PEN) and Inspire Medical Systems (NYSE:INSP) are both mid-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.
Analyst Recommendations
This is a summary of current recommendations and price targets for Penumbra and Inspire Medical Systems, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Penumbra | 0 | 2 | 4 | 0 | 2.67 |
| Inspire Medical Systems | 0 | 3 | 8 | 0 | 2.73 |
Penumbra currently has a consensus price target of $279.00, indicating a potential upside of 2.56%. Inspire Medical Systems has a consensus price target of $168.5455, indicating a potential downside of 22.84%. Given Penumbra's higher probable upside, analysts plainly believe Penumbra is more favorable than Inspire Medical Systems.
Profitability
This table compares Penumbra and Inspire Medical Systems' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Penumbra | -1.79% | -0.12% | -0.09% |
| Inspire Medical Systems | -61.07% | -32.23% | -26.42% |
Volatility & Risk
Penumbra has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, Inspire Medical Systems has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500.
Insider & Institutional Ownership
88.2% of Penumbra shares are held by institutional investors. Comparatively, 96.3% of Inspire Medical Systems shares are held by institutional investors. 8.9% of Penumbra shares are held by insiders. Comparatively, 6.6% of Inspire Medical Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Penumbra and Inspire Medical Systems' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Penumbra | $547.41 million | 18.11 | $48.46 million | $0.98 | 277.58 |
| Inspire Medical Systems | $82.05 million | 72.33 | $-33,240,000.00 | ($1.40) | -156.04 |
Penumbra has higher revenue and earnings than Inspire Medical Systems. Inspire Medical Systems is trading at a lower price-to-earnings ratio than Penumbra, indicating that it is currently the more affordable of the two stocks.
Summary
Penumbra beats Inspire Medical Systems on 8 of the 14 factors compared between the two stocks.
