Financial Survey: Zhongchao (NASDAQ:ZCMD) vs. Inspire Medical Systems (NYSE:INSP)

Zhongchao (NASDAQ:ZCMD) and Inspire Medical Systems (NYSE:INSP) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Risk and Volatility

Zhongchao has a beta of -0.13, indicating that its share price is 113% less volatile than the S&P 500. Comparatively, Inspire Medical Systems has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zhongchao	N/A	N/A	N/A
Inspire Medical Systems	14.33%	10.35%	8.81%

Valuation & Earnings

This table compares Zhongchao and Inspire Medical Systems”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zhongchao	$11.38 million	0.01	-$6.31 million	N/A	N/A
Inspire Medical Systems	$911.98 million	1.33	$145.42 million	$4.49	9.36

Inspire Medical Systems has higher revenue and earnings than Zhongchao.

Analyst Recommendations

This is a summary of current recommendations for Zhongchao and Inspire Medical Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zhongchao	1	0	0	0	1.00
Inspire Medical Systems	3	13	4	0	2.05

Inspire Medical Systems has a consensus price target of $81.84, suggesting a potential upside of 94.67%. Given Inspire Medical Systems’ stronger consensus rating and higher probable upside, analysts plainly believe Inspire Medical Systems is more favorable than Zhongchao.

Institutional and Insider Ownership

1.7% of Zhongchao shares are owned by institutional investors. Comparatively, 94.9% of Inspire Medical Systems shares are owned by institutional investors. 28.6% of Zhongchao shares are owned by insiders. Comparatively, 2.2% 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 is poised for long-term growth.

Summary

Inspire Medical Systems beats Zhongchao on 11 of the 12 factors compared between the two stocks.

About Zhongchao

Zhongchao Inc. provides healthcare information, education, and training services in the People's Republic of China. The company offers online and onsite health information services, healthcare education programs, and healthcare training products, including clinical practice training, open classes of popular medical topics, interactive case studies, academic conference and workshops, continuing education courses, and articles and short videos with educational healthcare content. It also provides customized medical courses and medical training services; and patient management services through online platform under the Zhongxun brand. The company operates through its mdmooc.org online platform under the MDMOOC brand; and Sunshine Health Forums, a Wechat subscription account and mobile app. It serves enterprises, non-for-profit organizations, and medical journals, as well as healthcare professionals, nurses, doctors, and other healthcare workers. The company was founded in 2012 and is headquartered in Shanghai, 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.