Beauty Health (NASDAQ:SKIN – Get Free Report) and Inspire Medical Systems (NYSE:INSP – Get Free Report) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.
Insider & Institutional Ownership
93.3% of Beauty Health shares are owned by institutional investors. Comparatively, 94.9% of Inspire Medical Systems shares are owned by institutional investors. 41.0% of Beauty Health 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 hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Beauty Health has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Inspire Medical Systems has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Beauty Health | -8.11% | -44.83% | -3.54% |
| Inspire Medical Systems | 4.37% | 5.30% | 4.58% |
Valuation and Earnings
This table compares Beauty Health and Inspire Medical Systems”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Beauty Health | $347.62 million | 0.56 | -$100.12 million | ($0.42) | -3.76 |
| Inspire Medical Systems | $755.59 million | 7.34 | -$21.15 million | $1.07 | 173.05 |
Inspire Medical Systems has higher revenue and earnings than Beauty Health. Beauty Health 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 Ratings
This is a summary of recent recommendations for Beauty Health and Inspire Medical Systems, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Beauty Health | 1 | 3 | 1 | 0 | 2.00 |
| Inspire Medical Systems | 0 | 3 | 9 | 0 | 2.75 |
Beauty Health currently has a consensus price target of $2.55, suggesting a potential upside of 61.39%. Inspire Medical Systems has a consensus price target of $233.58, suggesting a potential upside of 26.15%. Given Beauty Health’s higher probable upside, equities research analysts plainly believe Beauty Health is more favorable than Inspire Medical Systems.
Summary
Inspire Medical Systems beats Beauty Health on 12 of the 14 factors compared between the two stocks.
About Beauty Health
The Beauty Health Company designs, develops, manufactures, markets, and sells aesthetic technologies and products worldwide. The company's flagship product includes HydraFacial that enhance the skin to cleanse, extract, and hydrate the skin with proprietary solutions and serums. Its products also comprise Syndeo, a Delivery System designs to connects providers to the consumer's preferences to create a more personalized experience; consumables, such as single-use tips, solutions, and serums used to provide a hydrafacial treatment; SkinStylus SteriLock Microsystem, a microneedling device used for the treatment of enhancing appearance of surgical or traumatic hypertrophic scars on the abdomen and facial acne scarring in Fitzpatrick skin types I, II, and III; and Keravive, a treatment for scalp health. The company was founded in 1997 and is headquartered in Long Beach, California.
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.
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