Zepp Health (NYSE:ZEPP – Get Free Report) and Inspire Medical Systems (NYSE:INSP – Get Free Report) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.
Profitability
This table compares Zepp Health and Inspire Medical Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zepp Health | -38.81% | -24.19% | -11.36% |
| Inspire Medical Systems | 5.05% | 9.40% | 8.04% |
Valuation & Earnings
This table compares Zepp Health and Inspire Medical Systems”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zepp Health | $182.60 million | 2.00 | -$75.73 million | ($4.83) | -5.22 |
| Inspire Medical Systems | $802.80 million | 3.06 | $53.51 million | $1.73 | 47.97 |
Inspire Medical Systems has higher revenue and earnings than Zepp Health. Zepp Health 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
52.6% of Zepp Health shares are owned by institutional investors. Comparatively, 94.9% of Inspire Medical Systems shares are owned by institutional investors. 36.0% of Zepp Health shares are owned by company insiders. Comparatively, 2.3% of Inspire Medical Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Zepp Health and Inspire Medical Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zepp Health | 1 | 0 | 1 | 0 | 2.00 |
| Inspire Medical Systems | 1 | 8 | 8 | 0 | 2.41 |
Zepp Health presently has a consensus target price of $60.23, suggesting a potential upside of 139.06%. Inspire Medical Systems has a consensus target price of $133.88, suggesting a potential upside of 61.31%. Given Zepp Health’s higher probable upside, equities research analysts clearly believe Zepp Health is more favorable than Inspire Medical Systems.
Volatility & Risk
Zepp Health has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, Inspire Medical Systems has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.
Summary
Inspire Medical Systems beats Zepp Health on 11 of the 14 factors compared between the two stocks.
About Zepp Health
Zepp Health Corporation operates as a smart wearable and health technology company worldwide. The company operates in two segments: Self-Branded Products and Others, and Xiaomi Wearable Products. It empowers users to live lives by optimizing health, fitness, and wellness journeys through its consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. The company through its proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, biometric sensors, and data algorithms, delivers cloud-based 24/7 actionable insights and guidance to help users attain wellness goals. The company offers smart bands, watches, modules, and scales; and associated accessories, smart hearable products, sportswear, home fitness equipment, home appliances, and smart watch accessories. It also provides charts and graphs to display analysis of the activity and biometric data collected from users through its Zepp Life and Zepp mobile apps. It offers its products under the Amazfit and Zepp brand names in approximately 90 countries. The company was formerly known as Huami Corporation and changed its name to Zepp Health Corporation in February 2021. Zepp Health Corporation was founded in 2013 and is headquartered in Hefei, the People's Republic of China.
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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