InMode (NASDAQ:INMD) versus Sunny Optical Technology (Group) (OTCMKTS:SNPTF) Critical Review

Sunny Optical Technology (Group) (OTCMKTS:SNPTF) and InMode (NASDAQ:INMD) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Risk & Volatility

Sunny Optical Technology (Group) has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, InMode has a beta of 2.14, meaning that its share price is 114% more volatile than the S&P 500.

Insider and Institutional Ownership

68.0% of InMode shares are owned by institutional investors. 6.9% of InMode shares are owned 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.

Valuation and Earnings

This table compares Sunny Optical Technology (Group) and InMode”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sunny Optical Technology (Group)	$5.33 billion	1.76	$375.45 million	N/A	N/A
InMode	$394.82 million	2.28	$181.27 million	$2.16	6.59

Sunny Optical Technology (Group) has higher revenue and earnings than InMode.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Sunny Optical Technology (Group) and InMode, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sunny Optical Technology (Group)	0	0	0	0	0.00
InMode	1	8	1	0	2.00

InMode has a consensus target price of $16.80, indicating a potential upside of 17.98%. Given InMode’s stronger consensus rating and higher possible upside, analysts clearly believe InMode is more favorable than Sunny Optical Technology (Group).

Profitability

This table compares Sunny Optical Technology (Group) and InMode’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sunny Optical Technology (Group)	N/A	N/A	N/A
InMode	41.04%	14.50%	12.88%

Summary

InMode beats Sunny Optical Technology (Group) on 10 of the 12 factors compared between the two stocks.

About Sunny Optical Technology (Group)

Sunny Optical Technology (Group) Company Limited, an investment holding company, engages in designing, researching, developing, manufacturing, and selling optical and optical related products, and scientific instruments. The company's Optical Components segment offers glass spherical and aspherical lenses, handset lens sets, vehicle lens sets, security surveillance lens sets, and other lens sets. Its Optoelectronic Products segment comprise handset camera modules, three dimensional optoelectronic products, vehicle modules, and other optoelectronic modules. The company's Optical Instruments segment includes microscopes and intelligent inspection equipment for testing. Its optoelectronic-related products are used in handsets, digital cameras, vehicle imaging and sensing systems, security surveillance systems, virtual reality/augmented reality, and robots, which are combined with optical, electronic, algorithm, and mechanical technologies. In addition, the company engages in the research and development of infrared and semiconductor technologies; trading of optical instruments and optoelectronics products; property leasing activities; and development, service, and consultation of technology; provision of financing services; and import and export agency services. It operates primarily in the People's Republic of China, rest of Asia, Europe, North America, and internationally. The company was founded in 1984 and is headquartered in Yuyao, China.

About InMode

InMode Ltd. designs, develops, manufactures, and markets minimally invasive aesthetic medical products based on its proprietary radiofrequency assisted lipolysis and deep subdermal fractional radiofrequency technologies in the United States and internationally. The company offers minimally invasive aesthetic medical products for various procedures, such as liposuction with simultaneous skin tightening, body and face contouring, and ablative skin rejuvenation treatments, as well as for use in women's health conditions and procedures. It also designs, develops, manufactures, and markets non-invasive medical aesthetic products that target an array of procedures, including permanent hair reduction, facial skin rejuvenation, wrinkle reduction, cellulite treatment, skin appearance and texture, and superficial benign vascular and pigmented lesions, as well as hands-free medical aesthetic products that target a range of procedures, such as skin tightening, fat reduction, and muscle stimulation. The company was formerly known as Invasix Ltd. and changed its name to InMode Ltd. in November 2017. InMode Ltd. was incorporated in 2008 and is headquartered in Yokneam, Israel.