iRhythm Technologies (NASDAQ:IRTC – Get Free Report) and Inspire Medical Systems (NYSE:INSP – Get Free Report) are both mid-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
Insider & Institutional Ownership
94.9% of Inspire Medical Systems shares are held by institutional investors. 1.1% of iRhythm Technologies shares are held by company insiders. Comparatively, 4.1% of Inspire Medical Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and recommmendations for iRhythm Technologies and Inspire Medical Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| iRhythm Technologies | 1 | 2 | 11 | 1 | 2.80 |
| Inspire Medical Systems | 1 | 7 | 9 | 0 | 2.47 |
Profitability
This table compares iRhythm Technologies and Inspire Medical Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| iRhythm Technologies | -7.32% | -41.86% | -4.42% |
| Inspire Medical Systems | 5.05% | 9.41% | 7.97% |
Valuation and Earnings
This table compares iRhythm Technologies and Inspire Medical Systems”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| iRhythm Technologies | $591.84 million | 9.96 | -$113.29 million | ($1.61) | -113.61 |
| Inspire Medical Systems | $802.80 million | 4.88 | $53.51 million | $1.47 | 91.74 |
Inspire Medical Systems has higher revenue and earnings than iRhythm Technologies. iRhythm 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 & Volatility
iRhythm Technologies has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Inspire Medical Systems has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.
Summary
Inspire Medical Systems beats iRhythm Technologies on 9 of the 15 factors compared between the two stocks.
About iRhythm Technologies
iRhythm Technologies, Inc., a digital healthcare company, engages in the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services to diagnose arrhythmias in the United States. It offers Zio services, an ambulatory monitoring solution, including long-term and short-term continuous monitoring and mobile cardiac telemetry monitoring services. The company also provides the Zio Monitor System, a prescription-only, remote electrocardiogram (ECG) monitoring system that consists of a patch ECG monitor that records the electric signal from the heart continuously for up to 14 days and the Zio ECG Utilization Software System, which supports the capture and analysis of ECG data recorded by the Zio Monitor patch at the end of the wear period, including specific arrhythmia events detected by the ZEUS System; the Zio XT System is the previous generation of the Zio Monitor System and is a prescription-only, remote ECG monitoring system that consists of the Zio XT patch that records the electric signal from the heart continuously for up to 14 days; and the Zio AT system, a prescription-only, remote ECG monitoring system that similarly consists of the Zio AT patch that records the electric signal from the heart continuously for up to 14 days and the ZEUS System, but which also incorporates the Zio AT wireless gateway that provides connectivity between the Zio AT patch and the ZEUS System during the patient wear period. It has a development collaboration agreement with Verily Life Sciences LLC and Verity Ireland Limited to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.
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.
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