iRhythm Technologies (NASDAQ:IRTC – Get Free Report) and Inspire Medical Systems (NYSE:INSP – Get Free Report) are both healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.
Volatility & Risk
iRhythm Technologies has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500. Comparatively, Inspire Medical Systems has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.
Earnings & Valuation
This table compares iRhythm Technologies 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 | |
| iRhythm Technologies | $747.14 million | 3.99 | -$44.55 million | ($1.17) | -75.79 |
| Inspire Medical Systems | $911.98 million | 1.97 | $145.42 million | $3.44 | 18.04 |
Inspire Medical Systems has higher revenue and earnings than iRhythm Technologies. iRhythm Technologies 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.
Analyst Recommendations
This is a breakdown of recent ratings for iRhythm Technologies and Inspire Medical Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| iRhythm Technologies | 1 | 2 | 13 | 1 | 2.82 |
| Inspire Medical Systems | 3 | 13 | 3 | 1 | 2.10 |
iRhythm Technologies currently has a consensus target price of $164.07, indicating a potential upside of 85.02%. Inspire Medical Systems has a consensus target price of $71.24, indicating a potential upside of 14.81%. Given iRhythm Technologies’ stronger consensus rating and higher possible upside, research analysts plainly believe iRhythm Technologies is more favorable than Inspire Medical Systems.
Institutional & Insider Ownership
94.9% of Inspire Medical Systems shares are held by institutional investors. 1.0% of iRhythm Technologies shares are held by insiders. Comparatively, 2.2% of Inspire Medical Systems shares are held by 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 iRhythm Technologies and Inspire Medical Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| iRhythm Technologies | -4.52% | 26.88% | 4.32% |
| Inspire Medical Systems | 11.43% | 7.32% | 6.39% |
About iRhythm Technologies
iRhythm Technologies is a medical technology company that develops digital solutions for detecting and monitoring heart rhythm disorders. Its services combine wearable electrocardiogram (ECG) devices with cloud-based data analysis and clinical reporting to help healthcare professionals assess patients for conditions such as cardiac arrhythmias. The company’s Zio product line includes wearable ECG monitors, such as Zio XT, which records a patient’s heart activity during an extended monitoring period. iRhythm also offers Zio AT, a monitoring service designed to provide clinicians with ECG data during the monitoring period.
About Inspire Medical Systems
Inspire Medical Systems is a medical technology company focused on treatments for obstructive sleep apnea, a condition in which breathing repeatedly stops or becomes restricted during sleep. Founded in 2007 and based in Minnesota, the company develops implantable devices intended for certain patients who cannot use or benefit from conventional positive airway pressure therapy. Its primary product, the Inspire Upper Airway Stimulation system, uses an implanted device to monitor breathing and deliver mild stimulation to the hypoglossal nerve, helping keep the airway open during sleep.
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