Financial Review: Alpha Tau Medical (NASDAQ:DRTS) versus Inspire Medical Systems (NYSE:INSP)

Alpha Tau Medical (NASDAQ:DRTS) and Inspire Medical Systems (NYSE:INSP) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Alpha Tau Medical and Inspire Medical Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha Tau Medical	0	0	4	0	3.00
Inspire Medical Systems	0	5	11	0	2.69

Alpha Tau Medical presently has a consensus price target of $12.00, indicating a potential upside of 342.80%. Inspire Medical Systems has a consensus price target of $256.53, indicating a potential upside of 58.80%. Given Alpha Tau Medical’s stronger consensus rating and higher probable upside, analysts plainly believe Alpha Tau Medical is more favorable than Inspire Medical Systems.

Risk & Volatility

Alpha Tau Medical has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Inspire Medical Systems has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Profitability

This table compares Alpha Tau Medical and Inspire Medical Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alpha Tau Medical	N/A	-32.54%	-26.70%
Inspire Medical Systems	-2.38%	-2.82%	-2.40%

Insider and Institutional Ownership

2.7% of Alpha Tau Medical shares are held by institutional investors. Comparatively, 94.9% of Inspire Medical Systems shares are held by institutional investors. 39.5% of Alpha Tau Medical shares are held by company insiders. Comparatively, 4.1% of Inspire Medical Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Alpha Tau Medical and Inspire Medical Systems’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha Tau Medical	N/A	N/A	-$29.16 million	($0.41)	-6.61
Inspire Medical Systems	$624.80 million	7.68	-$21.15 million	($0.55)	-293.73

Inspire Medical Systems has higher revenue and earnings than Alpha Tau Medical. Inspire Medical Systems is trading at a lower price-to-earnings ratio than Alpha Tau Medical, indicating that it is currently the more affordable of the two stocks.

Summary

Inspire Medical Systems beats Alpha Tau Medical on 7 of the 13 factors compared between the two stocks.

About Alpha Tau Medical

Alpha Tau Medical Ltd., a clinical-stage oncology therapeutics company, engages in research, development, and commercialization of diffusing alpha-emitters radiation therapy (Alpha DaRT) for the treatment of solid cancer In Israel and the United States. Its Alpha-DaRT technology used in clinical trials for skin, oral, pancreatic, prostate, and breast cancers; and preclinical studies for brain, hepatic cell carcinoma, glioblastoma multiforme, lung cancer, and others. The company was incorporated in 2015 and is headquartered in Jerusalem, Israel.

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.