Critical Analysis: Inspire Medical Systems (NYSE:INSP) vs. Microbot Medical (NASDAQ:MBOT)

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

Risk and Volatility

Microbot Medical has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, Inspire Medical Systems has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Microbot Medical	N/A	-218.30%	-158.17%
Inspire Medical Systems	4.37%	5.30%	4.58%

Institutional & Insider Ownership

16.3% of Microbot Medical shares are owned by institutional investors. Comparatively, 94.9% of Inspire Medical Systems shares are owned by institutional investors. 10.5% of Microbot Medical shares are owned by company insiders. Comparatively, 4.1% of Inspire Medical Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Microbot Medical 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
Microbot Medical	N/A	N/A	-$10.74 million	($0.80)	-1.39
Inspire Medical Systems	$755.59 million	7.48	-$21.15 million	$1.07	176.15

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Microbot Medical and Inspire Medical Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Microbot Medical	0	0	1	0	3.00
Inspire Medical Systems	0	3	9	0	2.75

Microbot Medical presently has a consensus price target of $7.00, suggesting a potential upside of 530.63%. Inspire Medical Systems has a consensus price target of $233.58, suggesting a potential upside of 23.93%. Given Microbot Medical’s stronger consensus rating and higher possible upside, analysts clearly believe Microbot Medical is more favorable than Inspire Medical Systems.

Summary

Inspire Medical Systems beats Microbot Medical on 8 of the 13 factors compared between the two stocks.

About Microbot Medical

Microbot Medical Inc., a pre-clinical medical device company, engages in the research, design, and development of robotic endoluminal surgery devices targeting the minimally invasive surgery space. The company offers LIBERTY, an endovascular robotic surgical system which allows physicians to conduct a catheter-based procedure from outside the catheterization laboratory, and avoid radiation exposure, physical strain, and the risk of cross contamination for use in cardiovascular, peripheral, and neurovascular spaces. It also provides NovaCross, an intellectual property and technology in the field of intraluminal revascularization devices with anchoring mechanism and integrated microcatheter. The company has a strategic collaboration agreement with Stryker Corporation for technology co-development. Microbot Medical Inc. was founded in 2010 and is based in Braintree, Massachusetts.

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.