Inspire Medical Systems (NYSE:INSP) & Biostage (OTCMKTS:BSTG) Critical Comparison

Inspire Medical Systems (NYSE:INSP) and Biostage (OTCMKTS:BSTG) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.

Valuation & Earnings

This table compares Inspire Medical Systems and Biostage’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	$624.80 million	6.36	-$21.15 million	($0.55)	-243.33
Biostage	N/A	N/A	-$6.07 million	($0.58)	-7.67

Biostage has lower revenue, but higher earnings than Inspire Medical Systems. Inspire Medical Systems is trading at a lower price-to-earnings ratio than Biostage, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

94.9% of Inspire Medical Systems shares are held by institutional investors. 4.1% of Inspire Medical Systems shares are held by company insiders. Comparatively, 15.3% of Biostage shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Inspire Medical Systems	-2.38%	-2.82%	-2.40%
Biostage	N/A	N/A	-174.43%

Risk & Volatility

Inspire Medical Systems has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, Biostage has a beta of -1.02, meaning that its share price is 202% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Inspire Medical Systems and Biostage, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inspire Medical Systems	0	5	11	0	2.69
Biostage	0	0	0	0	N/A

Inspire Medical Systems currently has a consensus price target of $251.20, indicating a potential upside of 87.70%. Given Inspire Medical Systems’ higher possible upside, equities research analysts clearly believe Inspire Medical Systems is more favorable than Biostage.

Summary

Inspire Medical Systems beats Biostage on 7 of the 12 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 Biostage

Biostage, Inc., a biotechnology company, offers products to cure patients of cancers, injuries, and birth defects of the gastro-intestinal tract and the airways. The company's pipeline includes organ-regeneration technology for the repair or replacement of diseased or damaged organs, as well as product candidates to treat cancer, injury, and birth defects of the bronchus. Its lead product candidate is Biostage Esophageal Implant for the treatment of severe esophageal disease. The company was formerly known as Harvard Apparatus Regenerative Technology, Inc. and changed its name to Biostage, Inc. in March 2016. Biostage, Inc. was founded in 2009 and is headquartered in Holliston, Massachusetts.