Head-To-Head Contrast: InMode (NASDAQ:INMD) vs. Boston Scientific (NYSE:BSX)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Boston Scientific	14.43%	19.46%	10.78%
InMode	41.04%	14.50%	12.88%

Analyst Recommendations

This is a summary of current ratings and target prices for Boston Scientific and InMode, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boston Scientific	0	2	20	2	3.00
InMode	1	8	1	0	2.00

Boston Scientific currently has a consensus target price of $124.85, suggesting a potential upside of 29.85%. InMode has a consensus target price of $16.60, suggesting a potential upside of 14.01%. Given Boston Scientific’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Boston Scientific is more favorable than InMode.

Institutional & Insider Ownership

89.1% of Boston Scientific shares are owned by institutional investors. Comparatively, 68.0% of InMode shares are owned by institutional investors. 0.5% of Boston Scientific shares are owned by company insiders. Comparatively, 6.9% of InMode shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Boston Scientific has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, InMode has a beta of 2.14, meaning that its stock price is 114% more volatile than the S&P 500.

Earnings & Valuation

This table compares Boston Scientific and InMode”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boston Scientific	$16.75 billion	8.51	$1.85 billion	$1.87	51.42
InMode	$394.82 million	2.33	$181.27 million	$2.16	6.74

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

Summary

Boston Scientific beats InMode on 10 of the 15 factors compared between the two stocks.

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.

About InMode

InMode Ltd. designs, develops, manufactures, and markets minimally invasive aesthetic medical products based on its proprietary radiofrequency assisted lipolysis and deep subdermal fractional radiofrequency technologies in the United States and internationally. The company offers minimally invasive aesthetic medical products for various procedures, such as liposuction with simultaneous skin tightening, body and face contouring, and ablative skin rejuvenation treatments, as well as for use in women's health conditions and procedures. It also designs, develops, manufactures, and markets non-invasive medical aesthetic products that target an array of procedures, including permanent hair reduction, facial skin rejuvenation, wrinkle reduction, cellulite treatment, skin appearance and texture, and superficial benign vascular and pigmented lesions, as well as hands-free medical aesthetic products that target a range of procedures, such as skin tightening, fat reduction, and muscle stimulation. The company was formerly known as Invasix Ltd. and changed its name to InMode Ltd. in November 2017. InMode Ltd. was incorporated in 2008 and is headquartered in Yokneam, Israel.