Critical Review: InspireMD (NYSE:NSPR) vs. RxSight (NASDAQ:RXST)

InspireMD (NYSE:NSPR) and RxSight (NASDAQ:RXST) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Valuation and Earnings

This table compares InspireMD and RxSight”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InspireMD	$10.84 million	1.95	-$19.92 million	($0.64)	-0.71
RxSight	$127.58 million	1.60	-$47.00 million	($1.13)	-4.34

InspireMD has higher earnings, but lower revenue than RxSight. RxSight is trading at a lower price-to-earnings ratio than InspireMD, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

44.8% of InspireMD shares are owned by institutional investors. Comparatively, 78.8% of RxSight shares are owned by institutional investors. 25.0% of InspireMD shares are owned by company insiders. Comparatively, 10.1% of RxSight shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for InspireMD and RxSight, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InspireMD	0	0	3	0	3.00
RxSight	3	7	2	0	1.92

InspireMD currently has a consensus price target of $4.50, suggesting a potential upside of 889.01%. RxSight has a consensus price target of $8.17, suggesting a potential upside of 66.78%. Given InspireMD’s stronger consensus rating and higher possible upside, equities analysts plainly believe InspireMD is more favorable than RxSight.

Volatility & Risk

InspireMD has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, RxSight has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Profitability

This table compares InspireMD and RxSight’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InspireMD	-413.96%	-69.42%	-57.68%
RxSight	N/A	N/A	N/A

Summary

InspireMD beats RxSight on 8 of the 14 factors compared between the two stocks.

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.

About RxSight

RxSight, Inc., a commercial-stage medical device company, engages in the research and development, manufacture, and sale of light adjustable intraocular lenses (LAL) used in cataract surgery in the United States and internationally. It offers RxSight system that enables doctors to customize and enhance the visual acuity for patients after cataract surgery. The company's RxSight system includes RxSight Light Adjustable Lens, a special photosensitive material that changes shape and power. RxSight light delivery device, an office-based light treatment device that delivers UV light in a programmed pattern to modify the LAL based on the visual correction needed to achieve desired vision after cataract surgery. It primarily serves cataract doctors. The company was formerly known as Calhoun Vision, Inc. and changed its name to RxSight, Inc. in February 2017. RxSight, Inc. was incorporated in 1997 and is headquartered in Aliso Viejo, California.