Inspire Medical Systems (NYSE:INSP – Get Free Report) and TELA Bio (NASDAQ:TELA – Get Free Report) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.
Valuation & Earnings
This table compares Inspire Medical Systems and TELA Bio”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Inspire Medical Systems | $840.11 million | 5.35 | $53.51 million | $2.17 | 70.17 |
| TELA Bio | $69.30 million | 0.57 | -$46.66 million | ($1.39) | -0.72 |
Profitability
This table compares Inspire Medical Systems and TELA Bio’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Inspire Medical Systems | 6.67% | 8.19% | 7.09% |
| TELA Bio | -60.49% | -556.18% | -63.13% |
Institutional and Insider Ownership
94.9% of Inspire Medical Systems shares are held by institutional investors. Comparatively, 94.3% of TELA Bio shares are held by institutional investors. 4.1% of Inspire Medical Systems shares are held by company insiders. Comparatively, 6.0% of TELA Bio shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Inspire Medical Systems and TELA Bio, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Inspire Medical Systems | 0 | 3 | 8 | 0 | 2.73 |
| TELA Bio | 0 | 1 | 3 | 0 | 2.75 |
Inspire Medical Systems presently has a consensus target price of $211.91, suggesting a potential upside of 39.16%. TELA Bio has a consensus target price of $7.25, suggesting a potential upside of 622.83%. Given TELA Bio’s stronger consensus rating and higher possible upside, analysts plainly believe TELA Bio is more favorable than Inspire Medical Systems.
Volatility and Risk
Inspire Medical Systems has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, TELA Bio has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.
Summary
Inspire Medical Systems beats TELA Bio on 11 of the 14 factors compared between the two stocks.
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.
About TELA Bio
TELA Bio, Inc., a commercial-stage medical technology company, focuses on providing soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's anatomy. The company provides a portfolio of OviTex Reinforced Tissue Matrix (OviTex) products for hernia repair and abdominal wall reconstruction; and OviTex PRS Reinforced Tissue Matrix products to address the unmet needs in plastic and reconstructive surgery, as well as OviTex for Laparoscopic and Robotic Procedures, a sterile reinforced tissue matrix derived from ovine rumen with polypropylene fiber intended to be used in laparoscopic and robotic-assisted hernia surgical repairs. It markets its products through a single direct sales force, principally in the United States. The company was incorporated in 2012 and is headquartered in Malvern, Pennsylvania.
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