CareCloud (NASDAQ:CCLD – Get Free Report) and Inspire Medical Systems (NYSE:INSP – Get Free Report) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.
Profitability
This table compares CareCloud and Inspire Medical Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CareCloud | 10.08% | 23.51% | 16.68% |
| Inspire Medical Systems | 6.17% | 10.38% | 8.93% |
Valuation and Earnings
This table compares CareCloud 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 | |
| CareCloud | $110.84 million | 1.19 | $7.85 million | ($0.04) | -77.75 |
| Inspire Medical Systems | $802.80 million | 2.77 | $53.51 million | $1.73 | 43.49 |
Inspire Medical Systems has higher revenue and earnings than CareCloud. CareCloud is trading at a lower price-to-earnings ratio than Inspire Medical Systems, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
10.2% of CareCloud shares are held by institutional investors. Comparatively, 94.9% of Inspire Medical Systems shares are held by institutional investors. 14.7% of CareCloud 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, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings for CareCloud and Inspire Medical Systems, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CareCloud | 1 | 2 | 1 | 0 | 2.00 |
| Inspire Medical Systems | 1 | 7 | 7 | 0 | 2.40 |
CareCloud presently has a consensus target price of $2.50, indicating a potential downside of 19.61%. Inspire Medical Systems has a consensus target price of $150.50, indicating a potential upside of 100.05%. Given Inspire Medical Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Inspire Medical Systems is more favorable than CareCloud.
Risk & Volatility
CareCloud has a beta of 2.1, meaning that its stock price is 110% more volatile than the S&P 500. Comparatively, Inspire Medical Systems has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.
Summary
Inspire Medical Systems beats CareCloud on 9 of the 14 factors compared between the two stocks.
About CareCloud
CareCloud, Inc., a healthcare information technology (IT) company, provides a suite of cloud-based solutions and related business services to healthcare providers and hospitals primarily in the United States. It operates in two segments, Healthcare IT and Medical Practice Management. The company's portfolio of proprietary software and business services includes technology-enabled business solutions; cloud-based software; digital health services; healthcare IT professional services and staffing; and medical practice management services. Its technology-enabled business solutions comprise revenue cycle management services, healthcare claims clearinghouse, and medical coding and credentialing services; electronic health records, practice management software and related capabilities, patient experience management solutions, business intelligence and healthcare analytics platforms, and customized applications, interfaces, and various other technology solutions, as well as artificial intelligence, such as CareCloud cirrusAI, AI-powered clinical decision support, AI-powered virtual support assistant, AI-driven appeals, and CareCloud cirrusAI. In addition, the company provides chronic care management, remote patient monitoring, and telemedicine solutions; and professional and consulting services, workforce augmentation and on-demand staffing, and strategic advisory services. Further, it offers medical practice management services to medical practices comprising appropriate facilities, equipment, supplies, support services, nurses, and administrative support staff, as well as management, bill-paying, and financial advisory services. It serves physicians, nurses, nurse practitioners, physician assistants, and other clinicians that render bills for their services. The company was formerly known as MTBC, Inc. and changed its name to CareCloud, Inc. in March 2021. CareCloud, Inc. was founded in 1999 and is headquartered in Somerset, New Jersey.
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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