Head-To-Head Analysis: Inspire Medical Systems (NYSE:INSP) & UFP Technologies (NASDAQ:UFPT)

Inspire Medical Systems (NYSE:INSP) and UFP Technologies (NASDAQ:UFPT) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.

Volatility & Risk

Inspire Medical Systems has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, UFP Technologies has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Inspire Medical Systems and UFP Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inspire Medical Systems	0	3	9	0	2.75
UFP Technologies	0	1	2	0	2.67

Inspire Medical Systems presently has a consensus price target of $233.58, indicating a potential upside of 24.36%. UFP Technologies has a consensus price target of $323.50, indicating a potential upside of 25.09%. Given UFP Technologies’ higher probable upside, analysts plainly believe UFP Technologies is more favorable than Inspire Medical Systems.

Earnings & Valuation

This table compares Inspire Medical Systems and UFP Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inspire Medical Systems	$755.59 million	7.45	-$21.15 million	$1.07	175.54
UFP Technologies	$461.85 million	4.30	$44.92 million	$7.01	36.89

UFP Technologies has lower revenue, but higher earnings than Inspire Medical Systems. UFP 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.

Profitability

This table compares Inspire Medical Systems and UFP Technologies’ 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%
UFP Technologies	11.74%	18.92%	12.33%

Insider & Institutional Ownership

94.9% of Inspire Medical Systems shares are held by institutional investors. Comparatively, 87.3% of UFP Technologies shares are held by institutional investors. 4.1% of Inspire Medical Systems shares are held by insiders. Comparatively, 6.2% of UFP Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

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 UFP Technologies

UFP Technologies, Inc. designs and manufactures solutions for medical devices, sterile packaging, and other highly engineered custom products. The company offers protective drapes for robotic surgery, single patient use surfaces, advanced wound care, infection prevention, disposables for surgical and endoscopic procedures, packaging for medical devices, orthopedic implants, biopharma drug manufacturing, and coils for catheters; and molded components for applications in acoustic insulation, interior trim, load floors, sunshades, SUV cargo cover handles, driveshaft damping, engine and manifold covers, quarter panels, and wheel liners. It also provides molded composites for commercial aviation and military gear for use in backpack components, knee and elbow pads, eyewear, and helmets; and reusable cases and custom for applications in military ballistics panels, virtual training systems, drones, communications equipment, and rugged portable computers. In addition, the company provides engineered products and components to customers in the automotive, aerospace and defense, and industrial markets for applications in military uniform and gear components, automotive interior trim, air filtration, and protective cases and inserts. It markets and sells its products through a direct sales force. The company was founded in 1963 and is headquartered in Newburyport, Massachusetts.