Critical Comparison: Boston Scientific (NYSE:BSX) vs. InspireMD (NYSE:NSPR)

InspireMD (NYSE:NSPR) and Boston Scientific (NYSE:BSX) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares InspireMD and Boston Scientific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InspireMD	-320.97%	-55.71%	-46.53%
Boston Scientific	11.19%	15.99%	8.87%

Analyst Recommendations

This is a breakdown of current ratings and price targets for InspireMD and Boston Scientific, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InspireMD	0	0	1	0	3.00
Boston Scientific	0	2	18	1	2.95

InspireMD presently has a consensus price target of $4.85, indicating a potential upside of 156.61%. Boston Scientific has a consensus price target of $74.27, indicating a potential upside of 1.33%. Given InspireMD’s stronger consensus rating and higher possible upside, research analysts plainly believe InspireMD is more favorable than Boston Scientific.

Earnings & Valuation

This table compares InspireMD and Boston Scientific’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InspireMD	$6.20 million	7.13	-$19.92 million	($1.08)	-1.75
Boston Scientific	$14.24 billion	7.55	$1.59 billion	$1.07	68.50

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

Institutional & Insider Ownership

44.8% of InspireMD shares are owned by institutional investors. Comparatively, 89.1% of Boston Scientific shares are owned by institutional investors. 21.6% of InspireMD shares are owned by insiders. Comparatively, 0.5% of Boston Scientific shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

InspireMD has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Boston Scientific has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.

Summary

Boston Scientific beats InspireMD on 11 of the 15 factors compared between the two stocks.

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.

About Boston Scientific

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through two segments, MedSurg and Cardiovascular. The company offers devices to diagnose and treat gastrointestinal and pulmonary conditions, such as resolution clips, biliary stent systems, stents and electrocautery enhanced delivery systems, direct visualization systems, digital catheters, and single-use duodenoscopes; devices to treat urological conditions, including ureteral stents, catheters, baskets, guidewires, sheaths, balloons, single-use digital flexible ureteroscopes, holmium laser systems, artificial urinary sphincter, laser system, fiber, and hydrogel systems; and devices to treat neurological movement disorders and manage chronic pain, such as spinal cord stimulator system, proprietary programming software, radiofrequency generator, indirect decompression systems, practice optimization tools, and deep brain stimulation system. It also provides technologies for diagnosing and treating coronary artery disease and aortic valve conditions; WATCHMAN FLX, a Left Atrial Appendage Closure Device; and implantable devices that monitor the heart and deliver electricity to treat cardiac abnormalities, such as cardioverter and cardiac resynchronization therapy defibrillators, MRI S-ICD systems, cardiac resynchronization therapy pacemakers, quadripolar LV leads, ICD leads, pacing leads, remote patient management systems, insertable cardiac monitor systems, and remote cardiac monitoring systems. In addition, the company offers diagnosis and treatment of rate and rhythm disorders of the heart; peripheral arterial and venous diseases; and products to diagnose, treat and ease forms of cancer. The company was incorporated in 1979 and is headquartered in Marlborough, Massachusetts.