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 $2.9B against $2.0B — 1.5× the size. Inspire Medical Systems, Inc. trades at the lower P/E: 15.1× against 19.3×. TransMedics Group, Inc. grew revenue faster over the last twelve months: 25.8% against 4.35%. TransMedics Group, Inc. has the higher net margin (22.7% vs 15.0%) and the lower return on invested capital (5.62% vs 6.70%). Across the 21 metrics below, Inspire Medical Systems, Inc. leads on 15 and TransMedics Group, Inc. on 6.

Valuation

Metric INSP TMDX Medical Devices median
P/E 15.13 19.30 22.18
P/S 2.26 4.41 2.70
P/B 2.46 5.69 2.46
Price to free cash flow 17.36 37.31 22.53
EV/EBITDA 24.81 28.28 11.78
EV/Sales 1.93 4.99 2.38
Earnings yield 6.61% 5.18% (8.22%)
Free cash flow yield 5.76% 2.68% (7.80%)

Profitability

Metric INSP TMDX Medical Devices median
Gross margin 86.13% 58.69% 56.01%
Operating margin 6.02% 12.21% (15.03%)
Net margin 15.03% 22.69% (20.40%)
Free cash flow margin 13.03% 11.82% (7.24%)
Return on equity 17.96% 36.28% (15.32%)
Return on assets 15.63% 12.88% (19.72%)
Return on invested capital 6.70% 5.62% (10.33%)

Growth

Metric INSP TMDX Medical Devices median
Revenue growth (TTM) 4.35% 25.82% 8.80%
EPS growth (last fiscal year) 179.43% 382.18% —
Revenue growth, 5-year CAGR 51.21% 88.21% 15.23%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric INSP TMDX Medical Devices median
Debt to equity 0.00 1.66 0.07
Current ratio 8.55 6.63 2.50
Net debt to EBITDA (4.97) 0.18 0.49

Dividend

Metric INSP TMDX Medical Devices median
Dividend yield — — 0.94%
Payout ratio 0.00 0.00 0.00

Size

Metric INSP TMDX Medical Devices median
Market cap 1.96b 2.91b 172.91m

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