Analyzing InMode (NASDAQ:INMD) & MariMed (OTCMKTS:MRMD)

MariMed (OTCMKTS:MRMD) and InMode (NASDAQ:INMD) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Earnings and Valuation

This table compares MariMed and InMode”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MariMed	$157.96 million	0.25	-$12.16 million	($0.04)	-2.45
InMode	$394.82 million	2.34	$181.27 million	$2.16	6.77

InMode has higher revenue and earnings than MariMed. MariMed is trading at a lower price-to-earnings ratio than InMode, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

MariMed has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, InMode has a beta of 2.14, meaning that its stock price is 114% more volatile than the S&P 500.

Institutional & Insider Ownership

0.2% of MariMed shares are owned by institutional investors. Comparatively, 68.0% of InMode shares are owned by institutional investors. 19.0% of MariMed shares are owned by company insiders. Comparatively, 6.9% of InMode shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares MariMed and InMode’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MariMed	-11.36%	-14.67%	-4.12%
InMode	41.04%	14.50%	12.88%

Analyst Recommendations

This is a summary of current ratings and target prices for MariMed and InMode, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MariMed	1	1	0	1	2.33
InMode	1	8	1	0	2.00

InMode has a consensus target price of $16.60, suggesting a potential upside of 13.54%. Given InMode’s higher probable upside, analysts plainly believe InMode is more favorable than MariMed.

Summary

InMode beats MariMed on 12 of the 15 factors compared between the two stocks.

About MariMed

MariMed Inc. engages in cultivation, production, and dispensing of medicinal and recreational cannabis in the United States and internationally. The company sells flowers and concentrates under the Nature’s Heritage brand; and soft and chewy baked goods and a hot chocolate mix under Bubby’s Baked brand; and drink mix under Vibations brand. It also offers chewable cannabis-infused mint tablet under the brand Kalm Fusion; and flower, vapes, and edibles under InHouse brand. In addition, the company provides supplement, nutrient-infused fruit chews under Betty’s Eddies brand and ice creams under Emack & Bolio’s brand. The company licenses its brands. MariMed Inc. was incorporated in 2011 and is based in Norwood, Massachusetts.

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.