Glaukos (NYSE:GKOS) versus Inspire Medical Systems (NYSE:INSP) Financial Analysis

Glaukos (NYSE:GKOS) and Inspire Medical Systems (NYSE:INSP) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Valuation & Earnings

This table compares Glaukos and Inspire Medical Systems’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Glaukos $181.28 million 11.93 -$12.95 million ($0.37) -160.59
Inspire Medical Systems $50.59 million 27.78 -$21.83 million ($1.50) -39.19

Glaukos has higher revenue and earnings than Inspire Medical Systems. Glaukos 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.

Institutional & Insider Ownership

96.3% of Glaukos shares are owned by institutional investors. Comparatively, 82.9% of Inspire Medical Systems shares are owned by institutional investors. 8.7% of Glaukos shares are owned by company insiders. Comparatively, 12.1% of Inspire Medical Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Glaukos and Inspire Medical Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Glaukos -5.93% -5.77% -4.42%
Inspire Medical Systems -39.73% -17.75% -14.38%

Analyst Ratings

This is a summary of current recommendations for Glaukos and Inspire Medical Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Glaukos 1 2 5 0 2.50
Inspire Medical Systems 1 1 2 0 2.25

Glaukos currently has a consensus target price of $74.57, indicating a potential upside of 25.50%. Inspire Medical Systems has a consensus target price of $60.25, indicating a potential upside of 2.50%. Given Glaukos’ stronger consensus rating and higher possible upside, analysts plainly believe Glaukos is more favorable than Inspire Medical Systems.

Volatility and Risk

Glaukos has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500. Comparatively, Inspire Medical Systems has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.

Summary

Glaukos beats Inspire Medical Systems on 11 of the 14 factors compared between the two stocks.

Glaukos Company Profile

Glaukos Corporation, an ophthalmic medical technology and pharmaceutical company, focuses on the development and commercialization of surgical devices and sustained pharmaceutical therapies designed to treat glaucoma. It offers iStent, a micro-bypass stent for insertion in conjunction with cataract surgery for the reduction of intraocular pressure in adult patients with mild-to-moderate open-angle glaucoma; and iStent inject trabecular micro-bypass stent that allows the surgeon to inject stents into various trabecular meshwork locations through a single corneal entry for the reduction of intraocular pressure in mild-to-moderate open-angle glaucoma in combination with cataract surgery. The company's product pipeline includes iStent Infinite trabecular micro-bypass system, which is used as a standalone procedure in patients with refractory glaucoma; iStent Supra suprachoroidal micro-bypass stent that is designed to reduce intraocular pressure by accessing the suprachoroidal space in the eye; iStent SA trabecular micro-bypass system, a two-stent product, which uses a different auto-injection inserter designed for use in a standalone procedure; and iDose, a targeted injectable drug delivery implant that is designed to be pre-loaded into a small gauge needle and injected into the eye through a self-sealing corneal needle penetration. The company markets its products through direct sales force in the United States and other 16 countries, as well as through distribution partners in Europe, the Asia Pacific, Latin America, and internationally. Glaukos Corporation was founded in 1998 and is headquartered in San Clemente, California.

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.

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