Inspire Medical Systems (NYSE:INSP – Get Free Report) and Outset Medical (NASDAQ:OM – Get Free Report) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Institutional & Insider Ownership
94.9% of Inspire Medical Systems shares are owned by institutional investors. 2.3% of Inspire Medical Systems shares are owned by insiders. Comparatively, 2.4% of Outset Medical shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings for Inspire Medical Systems and Outset Medical, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Inspire Medical Systems | 0 | 7 | 7 | 0 | 2.50 |
| Outset Medical | 0 | 1 | 1 | 1 | 3.00 |
Risk and Volatility
Inspire Medical Systems has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Outset Medical has a beta of 2.14, meaning that its stock price is 114% more volatile than the S&P 500.
Profitability
This table compares Inspire Medical Systems and Outset Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Inspire Medical Systems | 6.17% | 10.38% | 8.93% |
| Outset Medical | -82.06% | -97.17% | -32.84% |
Earnings & Valuation
This table compares Inspire Medical Systems and Outset Medical”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Inspire Medical Systems | $802.80 million | 2.78 | $53.51 million | $1.73 | 43.62 |
| Outset Medical | $113.69 million | 2.26 | -$127.98 million | ($20.29) | -0.71 |
Inspire Medical Systems has higher revenue and earnings than Outset Medical. Outset Medical 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.
Summary
Inspire Medical Systems beats Outset Medical on 11 of the 15 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 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.
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