Critical Contrast: Inspire Medical Systems (NYSE:INSP) & Apyx Medical (NASDAQ:APYX)

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

Volatility and Risk

Inspire Medical Systems has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Apyx Medical has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Inspire Medical Systems	4.37%	5.30%	4.58%
Apyx Medical	-58.59%	-137.98%	-36.74%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Inspire Medical Systems and Apyx Medical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inspire Medical Systems	0	4	8	0	2.67
Apyx Medical	0	2	0	1	2.67

Inspire Medical Systems presently has a consensus price target of $227.75, indicating a potential upside of 25.08%. Given Inspire Medical Systems’ higher possible upside, equities research analysts clearly believe Inspire Medical Systems is more favorable than Apyx Medical.

Earnings & Valuation

This table compares Inspire Medical Systems and Apyx Medical”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inspire Medical Systems	$624.80 million	8.73	-$21.15 million	$1.07	170.17
Apyx Medical	$52.35 million	0.96	-$18.71 million	($0.83)	-1.61

Apyx Medical has lower revenue, but higher earnings than Inspire Medical Systems. Apyx Medical 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.

Insider & Institutional Ownership

94.9% of Inspire Medical Systems shares are owned by institutional investors. Comparatively, 55.3% of Apyx Medical shares are owned by institutional investors. 4.1% of Inspire Medical Systems shares are owned by insiders. Comparatively, 16.8% of Apyx Medical shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Inspire Medical Systems beats Apyx Medical on 11 of the 14 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 Apyx Medical

Apyx Medical Corporation, an energy technology company, engages in the design, development, and manufacture of medical devices in the United States and internationally. The company operates through two segments: Advanced Energy and Original Equipment Manufacturing (OEM). It offers Helium Plasma Generator for delivery of RF energy and helium plasma to cut, coagulate, and ablate soft tissue during open and minimally invasive surgical procedures. The company's Helium Plasma Technology products are marketed and sold under the Renuvion name in the cosmetic surgery market and under the J-Plasma name in the hospital surgical market. It also develops and manufactures various hand pieces for open and laparoscopic procedures; and OEM generators, as well as related accessories. The company was formerly known as Bovie Medical Corporation and changed its name to Apyx Medical Corporation in January 2019. Apyx Medical Corporation was incorporated in 1982 and is based in Clearwater, Florida.