Inspire Medical Systems (NYSE:INSP) and Cerus (NASDAQ:CERS) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.
Insider & Institutional Ownership
83.4% of Inspire Medical Systems shares are held by institutional investors. Comparatively, 76.5% of Cerus shares are held by institutional investors. 12.1% of Inspire Medical Systems shares are held by insiders. Comparatively, 7.3% of Cerus shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Inspire Medical Systems has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, Cerus has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Inspire Medical Systems and Cerus, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Inspire Medical Systems||0||2||1||0||2.33|
Inspire Medical Systems currently has a consensus price target of $68.00, suggesting a potential upside of 6.27%. Cerus has a consensus price target of $7.75, suggesting a potential upside of 73.38%. Given Cerus’ stronger consensus rating and higher probable upside, analysts plainly believe Cerus is more favorable than Inspire Medical Systems.
Valuation & Earnings
This table compares Inspire Medical Systems and Cerus’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Inspire Medical Systems||$50.59 million||30.44||-$21.83 million||($1.50)||-42.66|
|Cerus||$60.91 million||10.30||-$57.56 million||($0.44)||-10.16|
Inspire Medical Systems has higher earnings, but lower revenue than Cerus. Inspire Medical Systems is trading at a lower price-to-earnings ratio than Cerus, indicating that it is currently the more affordable of the two stocks.
This table compares Inspire Medical Systems and Cerus’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Inspire Medical Systems||-40.36%||-18.67%||-15.26%|
Inspire Medical Systems Company Profile
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). It offers Inspire system, a neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea. The company was founded in 2007 and is headquartered in Maple Grove, Minnesota.
Cerus Company Profile
Cerus Corporation, a biomedical products company, focuses on developing and commercializing the INTERCEPT Blood System to enhance blood safety. Its INTERCEPT Blood System, a proprietary technology for controlling biological replication that is designed to reduce blood-borne pathogens in donated blood components intended for transfusion. The company offers INTERCEPT Blood Systems for platelets and plasma, which is designed to inactivate blood-borne pathogens in platelets and plasma donated for transfusion; and INTERCEPT Blood System for red blood cells to inactivate blood-borne pathogens in red blood cells donated for transfusion. It markets platelet and plasma systems through its direct sales force and distributors in the United States, Europe, the Commonwealth of Independent States, the Middle East, Latin America, and internationally. Cerus Corporation was founded in 1991 and is headquartered in Concord, California.
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