Head-To-Head Review: Utah Medical Products (NASDAQ:UTMD) & Inspire Medical Systems (NYSE:INSP)

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

Valuation and Earnings

This table compares Utah Medical Products and Inspire Medical Systems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Utah Medical Products	$44.08 million	4.72	$16.64 million	$4.27	14.37
Inspire Medical Systems	$755.59 million	7.88	-$21.15 million	$1.07	185.68

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Utah Medical Products	34.62%	12.10%	11.50%
Inspire Medical Systems	4.37%	5.30%	4.58%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Utah Medical Products and Inspire Medical Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Utah Medical Products	0	0	0	0	0.00
Inspire Medical Systems	0	3	9	0	2.75

Inspire Medical Systems has a consensus price target of $233.58, indicating a potential upside of 17.57%. Given Inspire Medical Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Inspire Medical Systems is more favorable than Utah Medical Products.

Institutional and Insider Ownership

69.6% of Utah Medical Products shares are held by institutional investors. Comparatively, 94.9% of Inspire Medical Systems shares are held by institutional investors. 6.6% of Utah Medical Products shares are held by company insiders. Comparatively, 4.1% of Inspire Medical Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Utah Medical Products has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500. Comparatively, Inspire Medical Systems has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.

Summary

Inspire Medical Systems beats Utah Medical Products on 8 of the 14 factors compared between the two stocks.

About Utah Medical Products

Utah Medical Products, Inc. develops, manufactures, and distributes medical devices for the healthcare industry worldwide. It offers fetal monitoring accessories, vacuum-assisted delivery systems, and other labor and delivery tools; DISPOSA-HOOD infant respiratory hoods; and DELTRAN PLUS blood pressure monitoring systems. It also provides GESCO, an umbilical vessel catheters, including DIALY-NATE disposable peritoneal dialysis sets; PALA-NATE silicone oral protection devices; URI-CATH urinary drainage systems; NUTRI-CATH\NUTRI-LOK feeding device; PICC-NATE, a percutaneous intraepithelial central venous catheter; MYELO-NATE lumbar sampling kits; HEMO-NATE disposable filters; and catheterization procedure tray of instruments and supplies. In addition, the company offers LETZ system to excise cervical intraepithelial neoplasia and other lower genital tract lesions; loop, ball, and needle electrodes; FILTRESSE evacuators; other specialty electrodes and supplies, and gynecologic tools; Femcare trocars, cannulae, laparoscopic instruments, and accessories; and EPITOME and OptiMicro electrosurgical devices. Further, it provides Filshie Clip female surgical contraception devices; PATHFINDER PLUS, an endoscopic irrigation devices; suprapubic catheterization; LIBERTY, an urinary incontinence treatment and control systems; ENDOCURETTE, a curette for uterine endometrial tissue sampling; TVUS/HSG-Cath to assess abnormal or dysfunctional uterine bleeding and other abnormalities of uterus; and LUMIN, a tool to manipulate the uterus in laparoscopic procedures. Additionally, it offers DELTRAN, a disposable pressure transducer; high-pressure and piezo-resistive transducer assemblies; and pressure monitoring accessories, components, and other molded parts. It serves neonatal intensive care units, labor and delivery departments, women's health centers in hospitals, outpatient clinics, and physician's offices. The company was incorporated in 1978 and is headquartered in Midvale, Utah.

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.