By otakuyassine3@gmail.com 
UFP Technologies (NASDAQ:UFPT – Get Free Report) and Inspire Medical Systems (NYSE:INSP – Get Free Report) are both industrial products companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.
Analyst Ratings
This is a breakdown of current ratings for UFP Technologies and Inspire Medical Systems, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| UFP Technologies | 0 | 1 | 2 | 0 | 2.67 |
| Inspire Medical Systems | 0 | 3 | 9 | 0 | 2.75 |
UFP Technologies currently has a consensus price target of $323.50, suggesting a potential upside of 25.09%. Inspire Medical Systems has a consensus price target of $233.58, suggesting a potential upside of 24.36%. Given UFP Technologies’ higher possible upside, equities research analysts plainly believe UFP Technologies is more favorable than Inspire Medical Systems.
Risk and Volatility
UFP Technologies has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Inspire Medical Systems has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.
Profitability
This table compares UFP Technologies and Inspire Medical Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| UFP Technologies | 11.74% | 18.92% | 12.33% |
| Inspire Medical Systems | 4.37% | 5.30% | 4.58% |
Earnings & Valuation
This table compares UFP Technologies and Inspire Medical Systems”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| UFP Technologies | $461.85 million | 4.30 | $44.92 million | $7.01 | 36.89 |
| Inspire Medical Systems | $755.59 million | 7.45 | -$21.15 million | $1.07 | 175.54 |
UFP Technologies has higher earnings, but lower revenue than Inspire Medical Systems. UFP Technologies is trading at a lower price-to-earnings ratio than Inspire Medical Systems, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
87.3% of UFP Technologies shares are owned by institutional investors. Comparatively, 94.9% of Inspire Medical Systems shares are owned by institutional investors. 6.2% of UFP Technologies shares are owned by insiders. Comparatively, 4.1% of Inspire Medical Systems shares are owned by 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.
About UFP Technologies
UFP Technologies, Inc. designs and manufactures solutions for medical devices, sterile packaging, and other highly engineered custom products. The company offers protective drapes for robotic surgery, single patient use surfaces, advanced wound care, infection prevention, disposables for surgical and endoscopic procedures, packaging for medical devices, orthopedic implants, biopharma drug manufacturing, and coils for catheters; and molded components for applications in acoustic insulation, interior trim, load floors, sunshades, SUV cargo cover handles, driveshaft damping, engine and manifold covers, quarter panels, and wheel liners. It also provides molded composites for commercial aviation and military gear for use in backpack components, knee and elbow pads, eyewear, and helmets; and reusable cases and custom for applications in military ballistics panels, virtual training systems, drones, communications equipment, and rugged portable computers. In addition, the company provides engineered products and components to customers in the automotive, aerospace and defense, and industrial markets for applications in military uniform and gear components, automotive interior trim, air filtration, and protective cases and inserts. It markets and sells its products through a direct sales force. The company was founded in 1963 and is headquartered in Newburyport, Massachusetts.
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.
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