Comparing Decision Diagnostics (OTCMKTS:DECN) & Inspire Medical Systems (NYSE:INSP)

Decision Diagnostics (OTCMKTS:DECN) and Inspire Medical Systems (NYSE:INSP) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Insider and Institutional Ownership

94.9% of Inspire Medical Systems shares are owned by institutional investors. 2.3% of Inspire Medical Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Decision Diagnostics	N/A	N/A	N/A
Inspire Medical Systems	7.92%	10.00%	8.68%

Earnings & Valuation

This table compares Decision Diagnostics and Inspire Medical Systems”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Decision Diagnostics	N/A	N/A	N/A	N/A	N/A
Inspire Medical Systems	$802.80 million	4.80	$53.51 million	$2.17	60.18

Inspire Medical Systems has higher revenue and earnings than Decision Diagnostics.

Volatility & Risk

Decision Diagnostics has a beta of -0.1, indicating that its share price is 110% less volatile than the S&P 500. Comparatively, Inspire Medical Systems has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Decision Diagnostics and Inspire Medical Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Decision Diagnostics	0	0	0	0	0.00
Inspire Medical Systems	0	3	8	0	2.73

Inspire Medical Systems has a consensus price target of $211.91, indicating a potential upside of 62.28%. Given Inspire Medical Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Inspire Medical Systems is more favorable than Decision Diagnostics.

Summary

Inspire Medical Systems beats Decision Diagnostics on 10 of the 10 factors compared between the two stocks.

About Decision Diagnostics

Decision Diagnostics Corp. develops smart phone based electronic medical record (EMR) technologies. The company offers prescription and non-prescription diagnostics; home testing products for the chronically ill; fulfillment services to direct to patient diabetes programs; and cell phone centric e-health products and technologies development services. It manufactures and distributes GenUltimate! glucose test strips, a Class II medical device for at-home use for the measurement of glucose; PetSure! glucose test strip for the glucose testing of dogs and cats designed to work with the Zoetis AlphaTrak and AlphaTrak II glucometers, a legacy meter; GenUltimate! 4Pets Glucose system, a proprietary glucose measuring system, including GenUltimate! 4Pets test strip and Avantage meter, for the testing of dogs, cats, and horses; and GenUltimate! Sure and GenUltimate! Precis test strips. In addition, it engages in the acquisition and holding of intellectual property including patents and trademarks and specialty manufacturing equipment. Further, the company also provides MD@Hand, an inpatient/outpatient management suite; Practice Probe, a data mining utility used to extract information from the physician's practice management system; and ResidenceWare, a residential management system that facilitates the relay of information from commercial and residential real estate management companies to occupying tenants using networking software systems and applications. Its EMR technologies are used by physicians at the point of care. The company was formerly known as InstaCare Corp. and changed its name to Decision Diagnostics Corp. in November 2011. Decision Diagnostics Corp. was founded in 2000 and is based in Westlake Village, California.

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.