Inspire Medical Systems (NYSE:INSP – Get Free Report) and Beauty Health (NASDAQ:SKIN – Get Free Report) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, analyst recommendations, institutional ownership, risk and valuation.
Valuation & Earnings
This table compares Inspire Medical Systems and Beauty Health”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Inspire Medical Systems | $755.59 million | 7.50 | -$21.15 million | $1.07 | 176.81 |
| Beauty Health | $347.62 million | 0.57 | -$100.12 million | ($0.42) | -3.83 |
Inspire Medical Systems has higher revenue and earnings than Beauty Health. Beauty Health 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.
Volatility and Risk
Analyst Recommendations
This is a summary of recent ratings and target prices for Inspire Medical Systems and Beauty Health, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Inspire Medical Systems | 0 | 3 | 9 | 0 | 2.75 |
| Beauty Health | 1 | 3 | 1 | 0 | 2.00 |
Inspire Medical Systems currently has a consensus target price of $233.58, suggesting a potential upside of 23.46%. Beauty Health has a consensus target price of $2.55, suggesting a potential upside of 58.39%. Given Beauty Health’s higher possible upside, analysts plainly believe Beauty Health is more favorable than Inspire Medical Systems.
Insider & Institutional Ownership
94.9% of Inspire Medical Systems shares are owned by institutional investors. Comparatively, 93.3% of Beauty Health shares are owned by institutional investors. 4.1% of Inspire Medical Systems shares are owned by company insiders. Comparatively, 41.0% of Beauty Health shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Inspire Medical Systems and Beauty Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Inspire Medical Systems | 4.37% | 5.30% | 4.58% |
| Beauty Health | -8.11% | -44.83% | -3.54% |
Summary
Inspire Medical Systems beats Beauty Health on 12 of the 14 factors compared between the two stocks.
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.
About Beauty Health
The Beauty Health Company designs, develops, manufactures, markets, and sells aesthetic technologies and products worldwide. The company's flagship product includes HydraFacial that enhance the skin to cleanse, extract, and hydrate the skin with proprietary solutions and serums. Its products also comprise Syndeo, a Delivery System designs to connects providers to the consumer's preferences to create a more personalized experience; consumables, such as single-use tips, solutions, and serums used to provide a hydrafacial treatment; SkinStylus SteriLock Microsystem, a microneedling device used for the treatment of enhancing appearance of surgical or traumatic hypertrophic scars on the abdomen and facial acne scarring in Fitzpatrick skin types I, II, and III; and Keravive, a treatment for scalp health. The company was founded in 1997 and is headquartered in Long Beach, California.
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