Analyzing InspireMD (NYSE:NSPR) & Edwards Lifesciences (NYSE:EW)
by Tristan Rich · The Markets DailyEdwards Lifesciences (NYSE:EW – Get Free Report) and InspireMD (NYSE:NSPR – Get Free Report) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.
Profitability
This table compares Edwards Lifesciences and InspireMD’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Edwards Lifesciences | 15.43% | 15.68% | 12.05% |
| InspireMD | -413.96% | -69.42% | -57.68% |
Valuation and Earnings
This table compares Edwards Lifesciences and InspireMD”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Edwards Lifesciences | $6.07 billion | 8.20 | $1.07 billion | $1.74 | 49.65 |
| InspireMD | $10.84 million | 3.00 | -$19.92 million | ($0.64) | -1.09 |
Edwards Lifesciences has higher revenue and earnings than InspireMD. InspireMD is trading at a lower price-to-earnings ratio than Edwards Lifesciences, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
79.5% of Edwards Lifesciences shares are held by institutional investors. Comparatively, 44.8% of InspireMD shares are held by institutional investors. 0.3% of Edwards Lifesciences shares are held by company insiders. Comparatively, 25.0% of InspireMD shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and target prices for Edwards Lifesciences and InspireMD, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Edwards Lifesciences | 0 | 6 | 17 | 0 | 2.74 |
| InspireMD | 0 | 0 | 3 | 0 | 3.00 |
Edwards Lifesciences currently has a consensus price target of $100.27, suggesting a potential upside of 16.06%. InspireMD has a consensus price target of $4.50, suggesting a potential upside of 542.86%. Given InspireMD’s stronger consensus rating and higher possible upside, analysts plainly believe InspireMD is more favorable than Edwards Lifesciences.
Risk and Volatility
Edwards Lifesciences has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, InspireMD has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.
Summary
Edwards Lifesciences beats InspireMD on 11 of the 14 factors compared between the two stocks.
About Edwards Lifesciences
Edwards Lifesciences Corporation provides products and technologies for structural heart disease and critical care monitoring in the United States, Europe, Japan, and internationally. It offers transcatheter heart valve replacement products for the minimally invasive replacement of aortic heart valves under the Edwards SAPIEN family of valves system; and transcatheter heart valve repair and replacement products to treat mitral and tricuspid valve diseases under the PASCAL PRECISION and Cardioband names. The company also provides surgical structural heart solutions, such as aortic surgical valve under the INSPIRIS name; INSPIRIS RESILLA aortic valve, which offers RESILIA tissue and VFit technology; KONECT RESILIA, a pre-assembled tissue valves conduit for complex combined procedures; and MITRIS RESILIA valve. In addition, it offers critical care solutions, including hemodynamic monitoring systems to measure a patient’s heart function and fluid status in surgical and intensive care settings under the FloTrac, Acumen IQ sensors, ClearSight, Acumen IQ cuffs, and ForeSight names; HemoSphere, a monitoring platform that displays physiological information; and Acumen Hypotension Prediction Index software that alerts clinicians in advance of a patient developing dangerously low blood pressure. The company distributes its products through a direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1958 and is headquartered in Irvine, California.
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.