Inspire Medical Systems, Inc. (INSP) vs TransMedics Group, Inc. (TMDX)

Inspire Medical Systems, Inc. and TransMedics Group, Inc. are both Medical Devices companies. TransMedics Group, Inc. is the larger, with a market value of $2.4B against $1.9B — 1.2× the size. TransMedics Group, Inc. trades at the lower P/E: 16.4× against 19.1×. TransMedics Group, Inc. grew revenue faster over the last twelve months: 28.5% against −0.19%. TransMedics Group, Inc. has the higher net margin (19.9% vs 11.4%) and the higher return on invested capital (48.0% vs 1.97%). Across the 21 metrics below, TransMedics Group, Inc. leads on 11 and Inspire Medical Systems, Inc. on 10.

Valuation

Metric INSP TMDX Medical Devices median
P/E 19.12 16.41 25.58
P/S 2.18 3.29 2.54
P/B 2.33 4.34 2.48
Price to free cash flow 19.64 53.51 28.81
EV/EBITDA 48.40 22.03 11.51
EV/Sales 1.82 3.84 2.72
Earnings yield 5.23% 6.09% (12.82%)
Free cash flow yield 5.09% 1.87% (8.18%)

Profitability

Metric INSP TMDX Medical Devices median
Gross margin 86.19% 58.60% 57.76%
Operating margin 1.79% 11.88% (15.07%)
Net margin 11.43% 19.85% (14.45%)
Free cash flow margin 11.11% 6.14% (3.88%)
Return on equity 13.49% 31.89% (10.35%)
Return on assets 11.44% 11.73% (17.26%)
Return on invested capital 1.97% 48.00% (5.27%)

Growth

Metric INSP TMDX Medical Devices median
Revenue growth (TTM) (0.19%) 28.48% 10.41%
EPS growth (last fiscal year) 179.43% 382.18% 28.17%
Revenue growth, 5-year CAGR 51.21% 88.21% 15.74%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric INSP TMDX Medical Devices median
Debt to equity 0.00 0.10 0.04
Current ratio 6.45 4.53 2.74
Net debt to EBITDA (4.97) 0.18 0.54

Dividend

Metric INSP TMDX Medical Devices median
Dividend yield — — 1.02%
Payout ratio — — 0.37

Size

Metric INSP TMDX Medical Devices median
Market cap 1.93b 2.39b 239.53m

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