Inspire Medical Systems (NYSE:INSP) & Co-Diagnostics (NASDAQ:CODX) Head-To-Head Comparison

Co-Diagnostics (NASDAQ:CODX) 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 profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Profitability

This table compares Co-Diagnostics and Inspire Medical Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Co-Diagnostics	-518.69%	-35.37%	-32.58%
Inspire Medical Systems	-3.39%	-3.93%	-3.38%

Valuation & Earnings

This table compares Co-Diagnostics 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
Co-Diagnostics	$6.81 million	5.37	-$35.33 million	($1.21)	-0.97
Inspire Medical Systems	$624.80 million	10.75	-$21.15 million	($0.74)	-299.50

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

Institutional & Insider Ownership

15.0% of Co-Diagnostics shares are owned by institutional investors. Comparatively, 94.9% of Inspire Medical Systems shares are owned by institutional investors. 2.4% of Co-Diagnostics 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 stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Co-Diagnostics and Inspire Medical Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Co-Diagnostics	0	1	0	0	2.00
Inspire Medical Systems	0	4	9	0	2.69

Co-Diagnostics currently has a consensus price target of $2.50, suggesting a potential upside of 113.68%. Inspire Medical Systems has a consensus price target of $271.29, suggesting a potential upside of 22.40%. Given Co-Diagnostics’ higher possible upside, equities research analysts clearly believe Co-Diagnostics is more favorable than Inspire Medical Systems.

Volatility and Risk

Co-Diagnostics has a beta of -0.68, indicating that its share price is 168% less volatile than the S&P 500. Comparatively, Inspire Medical Systems has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

Summary

Inspire Medical Systems beats Co-Diagnostics on 12 of the 14 factors compared between the two stocks.

About Co-Diagnostics

Co-Diagnostics, Inc., a molecular diagnostics company, develops, manufactures, and sells reagents used for diagnostic tests that function through the detection and/or analysis of nucleic acid molecules in the United States and internationally. It offers polymerase chain reaction (PCR) diagnostic tests for COVID-19, influenza, tuberculosis, hepatitis B and C, human papillomavirus, malaria, chikungunya, dengue, and the zika virus; three multiplexed tests to test mosquitos for the identification of diseases carried by the mosquitos; and molecular tools for detection of infectious diseases, liquid biopsy for cancer screening, and agricultural applications. The company also provides tests that identify genetic traits in plant and animal genomes; and portable PCR device designed to bring PCR to patients in point-of-care and at-home settings. In addition, it intends to sell diagnostic equipment from other manufacturers as self-contained lab systems. The company was incorporated in 2013 and is headquartered in Salt Lake City, Utah.

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.