Inspire Medical Systems (NYSE:INSP – Get Free Report) and UFP Technologies (NASDAQ:UFPT – Get Free Report) are both mid-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.
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 company insiders. Comparatively, 6.2% of UFP Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and target prices 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 |
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% |
Valuation & Earnings
This table compares Inspire Medical Systems and UFP Technologies”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Inspire Medical Systems | $755.59 million | 7.52 | -$21.15 million | $1.07 | 177.12 |
| UFP Technologies | $400.07 million | 5.50 | $44.92 million | $7.01 | 40.96 |
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.
Risk and Volatility
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.
Summary
Inspire Medical Systems beats UFP Technologies on 8 of the 14 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 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.
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