Outset Medical (NASDAQ:OM – Get Free Report) and InspireMD (NYSE:NSPR – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.
Valuation & Earnings
This table compares Outset Medical and InspireMD”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Outset Medical | $119.48 million | 0.64 | -$81.65 million | ($4.09) | -1.00 |
| InspireMD | $10.84 million | 2.06 | -$19.92 million | ($0.64) | -0.75 |
InspireMD has lower revenue, but higher earnings than Outset Medical. Outset Medical is trading at a lower price-to-earnings ratio than InspireMD, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
44.8% of InspireMD shares are owned by institutional investors. 2.5% of Outset Medical shares are owned by company insiders. Comparatively, 25.0% of InspireMD shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Outset Medical and InspireMD’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Outset Medical | -63.06% | -61.67% | -28.25% |
| InspireMD | -413.96% | -69.42% | -57.68% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Outset Medical and InspireMD, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Outset Medical | 1 | 1 | 3 | 0 | 2.40 |
| InspireMD | 0 | 0 | 3 | 0 | 3.00 |
Outset Medical presently has a consensus price target of $10.00, suggesting a potential upside of 145.10%. InspireMD has a consensus price target of $4.50, suggesting a potential upside of 836.72%. Given InspireMD’s stronger consensus rating and higher possible upside, analysts plainly believe InspireMD is more favorable than Outset Medical.
Risk & Volatility
Outset Medical has a beta of 1.99, suggesting that its stock price is 99% more volatile than the S&P 500. Comparatively, InspireMD has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.
Summary
InspireMD beats Outset Medical on 8 of the 13 factors compared between the two stocks.
About Outset Medical
Outset Medical, Inc., a medical technology company, engages in the development of a hemodialysis system for hemodialysis in the United States. The company offers Tablo Hemodialysis System, a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings; and manufactures, supports, and distributes for Tablo console, Tablo cartridge, and other consumables. It also provides Tablo Data Ecosystem, including TabloHub, a customer-facing portal; MyTablo, a patient-facing portal; and TabloDash, an internal data analytics platform. The company was formerly known as Home Dialysis Plus, Ltd. and changed its name to Outset Medical, Inc. in January 2015. Outset Medical, Inc. was incorporated in 2003 and is headquartered in San Jose, California.
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.
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