Inspire Medical Systems (NYSE:INSP – Get Free Report) and iRhythm Technologies (NASDAQ:IRTC – Get Free Report) are both mid-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.
Insider and Institutional Ownership
94.9% of Inspire Medical Systems shares are held by institutional investors. 2.3% of Inspire Medical Systems shares are held by company insiders. Comparatively, 0.7% of iRhythm Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent recommendations for Inspire Medical Systems and iRhythm Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Inspire Medical Systems | 1 | 7 | 10 | 0 | 2.50 |
| iRhythm Technologies | 1 | 2 | 11 | 1 | 2.80 |
Valuation & Earnings
This table compares Inspire Medical Systems and iRhythm 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 | $802.80 million | 5.21 | $53.51 million | $1.47 | 97.88 |
| iRhythm Technologies | $591.84 million | 9.44 | -$113.29 million | ($1.61) | -107.66 |
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
Inspire Medical Systems has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, iRhythm Technologies has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.
Profitability
This table compares Inspire Medical Systems and iRhythm Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Inspire Medical Systems | 5.05% | 9.41% | 7.97% |
| iRhythm Technologies | -7.32% | -41.86% | -4.42% |
Summary
Inspire Medical Systems beats iRhythm Technologies on 9 of the 15 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 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.
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