Critical Contrast: InspireMD (NYSE:NSPR) and GBS (NYSE:GBS)

InspireMD (NYSE:NSPR) and GBS (NYSE:GBS) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.

Valuation and Earnings

This table compares InspireMD and GBS”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InspireMD	$6.57 million	10.55	-$19.92 million	($0.76)	-3.66
GBS	$440,000.00	16.01	-$8.31 million	($0.56)	-0.85

GBS has lower revenue, but higher earnings than InspireMD. InspireMD is trading at a lower price-to-earnings ratio than GBS, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares InspireMD and GBS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InspireMD	-388.67%	-62.02%	-52.26%
GBS	N/A	-85.64%	-54.42%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for InspireMD and GBS, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InspireMD	0	0	1	0	3.00
GBS	0	0	0	0	N/A

InspireMD presently has a consensus price target of $4.50, suggesting a potential upside of 61.87%. Given InspireMD’s higher possible upside, analysts clearly believe InspireMD is more favorable than GBS.

Insider and Institutional Ownership

44.8% of InspireMD shares are held by institutional investors. Comparatively, 2.8% of GBS shares are held by institutional investors. 29.7% of InspireMD shares are held by company insiders. Comparatively, 0.3% of GBS shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

InspireMD has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, GBS has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.

Summary

InspireMD beats GBS on 7 of the 13 factors compared between the two stocks.

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.

About GBS

GBS Inc. operates as a biosensor diagnostic technology company in the Asia-Pacific and North America. It offers Saliva Glucose Biosensor, an organic thin-film transistor for diabetes management that measures glucose in saliva. The company also focuses on developing SARS-CoV-2 Biosensor, a biosensor test can be used as a complement to the (RNA) virus detection test; and a biosensor platform comprising of biochemistry, immunology, tumor markers, hormones, and nucleic acid diagnostic modalities. GBS Inc. has a research agreement with Johns Hopkins Bloomberg School of Public Health for the development of saliva-based diagnostic tests. The company was formerly known as Glucose Biosensor Systems (Greater China) Holdings, Inc. and changed its name to GBS Inc. in September 2019. The company was incorporated in 2016 and is headquartered in New York, New York. GBS Inc. is a subsidiary of Life Science Biosensor Diagnostics Pty Ltd.