Head-To-Head Comparison: InspireMD (NYSE:NSPR) versus Spectral AI (NASDAQ:MDAI)

Spectral AI (NASDAQ:MDAI) and InspireMD (NYSE:NSPR) are both small-cap 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

Spectral AI has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500. Comparatively, InspireMD has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Profitability

This table compares Spectral AI and InspireMD’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spectral AI	-40.78%	N/A	-77.87%
InspireMD	-413.96%	-69.42%	-57.68%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Spectral AI and InspireMD, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectral AI	0	0	2	1	3.33
InspireMD	0	0	2	0	3.00

Spectral AI presently has a consensus price target of $4.75, indicating a potential upside of 119.40%. InspireMD has a consensus price target of $4.75, indicating a potential upside of 63.23%. Given Spectral AI’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Spectral AI is more favorable than InspireMD.

Earnings and Valuation

This table compares Spectral AI and InspireMD”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectral AI	$18.06 million	2.23	-$20.85 million	($0.65)	-3.33
InspireMD	$6.20 million	12.24	-$19.92 million	($0.75)	-3.88

InspireMD has lower revenue, but higher earnings than Spectral AI. InspireMD is trading at a lower price-to-earnings ratio than Spectral AI, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

67.1% of Spectral AI shares are owned by institutional investors. Comparatively, 44.8% of InspireMD shares are owned by institutional investors. 56.7% of Spectral AI shares are owned by insiders. Comparatively, 29.7% of InspireMD 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

Spectral AI beats InspireMD on 10 of the 14 factors compared between the two stocks.

About Spectral AI

Spectral AI, Inc., an artificial intelligence (AI) company, focuses on developing predictive medical diagnostics in the United States. The company develops medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers. Its products include DeepView System, a predictive analytics platform integrated with the predictive AI-Burn, which combines AI algorithms and multispectral imaging (MSI) imaging for an assessment of wound healing potential and offers clinicians an objective and immediate assessment of a wound’s healing potential prior to treatment or other medical intervention; and DeepView SnapShot M, a handheld, portable, and wireless diagnostic tool, that provides a potential enhanced and expanded use for the government and emergency care, first responders, and potentially home health care professionals. The company is headquartered in Dallas, Texas.

About InspireMD

InspireMD, Inc., a medical device company, focuses on the development and commercialization of MicroNet stent platform technology for the treatment of vascular and coronary diseases in Europe, Latin America, the Middle East, and Asia Pacific. The company offers CGuard carotid embolic prevention system (EPS) for use in carotid artery applications; CGuard Prime Stent System, a mesh-covered self-expanding carotid stent; and SwitchGuard NPS, a non-invasive transcarotid artery revascularization device; as well as treating acute stroke with tandem lesions. InspireMD, Inc. has a strategic agreement with Jacobs Institute to execute an early feasibility study of CGuard Prime for the treatment of acute stroke patients with tandem lesions. The company sells its products through local distribution partners. InspireMD, Inc. was founded in 2005 and is headquartered in Tel Aviv-Yafo, Israel.