Analyzing InspireMD (NYSE:NSPR) & 3M (NYSE:MMM)

InspireMD (NYSE:NSPR) and 3M (NYSE:MMM) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Profitability

This table compares InspireMD and 3M’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InspireMD	-388.67%	-62.02%	-52.26%
3M	3.08%	112.92%	10.52%

Insider & Institutional Ownership

44.8% of InspireMD shares are held by institutional investors. Comparatively, 65.3% of 3M shares are held by institutional investors. 29.7% of InspireMD shares are held by insiders. Comparatively, 0.3% of 3M shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

InspireMD has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, 3M has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for InspireMD and 3M, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InspireMD	0	0	1	0	3.00
3M	2	4	8	0	2.43

InspireMD currently has a consensus price target of $4.50, suggesting a potential upside of 63.64%. 3M has a consensus price target of $124.43, suggesting a potential downside of 9.37%. Given InspireMD’s stronger consensus rating and higher probable upside, equities analysts clearly believe InspireMD is more favorable than 3M.

Valuation and Earnings

This table compares InspireMD and 3M”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InspireMD	$6.57 million	10.44	-$19.92 million	($0.76)	-3.62
3M	$32.61 billion	2.33	-$7.00 billion	($12.72)	-10.79

InspireMD has higher earnings, but lower revenue than 3M. 3M is trading at a lower price-to-earnings ratio than InspireMD, indicating that it is currently the more affordable of the two stocks.

About InspireMD

InspireMD, Inc., a medical device company, focuses on the development and commercialization of MicroNet stent platform technology for the treatment of vascular and coronary diseases in Europe, Latin America, the Middle East, and Asia Pacific. The company offers CGuard carotid embolic prevention system (EPS) for use in carotid artery applications; CGuard Prime Stent System, a mesh-covered self-expanding carotid stent; and SwitchGuard NPS, a non-invasive transcarotid artery revascularization device; as well as treating acute stroke with tandem lesions. InspireMD, Inc. has a strategic agreement with Jacobs Institute to execute an early feasibility study of CGuard Prime for the treatment of acute stroke patients with tandem lesions. The company sells its products through local distribution partners. InspireMD, Inc. was founded in 2005 and is headquartered in Tel Aviv-Yafo, Israel.

About 3M

3M Company provides diversified technology services in the United States and internationally. The company's Safety and Industrial segment offers industrial abrasives and finishing for metalworking applications; autobody repair solutions; closure systems for personal hygiene products, masking, and packaging materials; electrical products and materials for construction and maintenance, power distribution, and electrical original equipment manufacturers; structural adhesives and tapes; respiratory, hearing, eye, and fall protection solutions; and natural and color-coated mineral granules for shingles. Its Transportation and Electronics segment provides ceramic solutions; attachment/bonding products, films, sound, and temperature management for transportation vehicles; premium large format graphic films for advertising and fleet signage; light management films and electronics assembly solutions; packaging and interconnection solutions; semiconductor production materials; data centers solutions; and reflective signage for highway, and vehicle safety. The company's Consumer segment provides consumer bandages, braces, supports, and consumer respirators; home cleaning products; retail abrasives, paint accessories, car care DIY products, picture hanging, and consumer air quality solutions; and stationery products. It offers its products through e-commerce and traditional wholesalers, retailers, jobbers, distributors, and dealers. 3M Company was founded in 1902 and is headquartered in Saint Paul, Minnesota.