Critical Survey: InspireMD (NYSE:NSPR) and AngioDynamics (NASDAQ:ANGO)

AngioDynamics (NASDAQ:ANGO) and InspireMD (NYSE:NSPR) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Profitability

This table compares AngioDynamics and InspireMD’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AngioDynamics	-79.38%	-7.26%	-4.78%
InspireMD	-413.96%	-69.42%	-57.68%

Volatility and Risk

AngioDynamics has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, InspireMD has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Institutional & Insider Ownership

89.4% of AngioDynamics shares are owned by institutional investors. Comparatively, 44.8% of InspireMD shares are owned by institutional investors. 5.4% of AngioDynamics shares are owned by company insiders. Comparatively, 29.7% of InspireMD shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares AngioDynamics and InspireMD”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AngioDynamics	$286.50 million	1.40	-$184.35 million	($5.63)	-1.76
InspireMD	$7.01 million	11.61	-$19.92 million	($0.78)	-3.51

InspireMD has lower revenue, but higher earnings than AngioDynamics. InspireMD is trading at a lower price-to-earnings ratio than AngioDynamics, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for AngioDynamics and InspireMD, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AngioDynamics	0	0	3	0	3.00
InspireMD	0	0	2	0	3.00

AngioDynamics presently has a consensus target price of $13.00, indicating a potential upside of 31.05%. InspireMD has a consensus target price of $4.75, indicating a potential upside of 73.36%. Given InspireMD’s higher probable upside, analysts clearly believe InspireMD is more favorable than AngioDynamics.

Summary

AngioDynamics beats InspireMD on 7 of the 13 factors compared between the two stocks.

About AngioDynamics

AngioDynamics, Inc., a medical technology company, engages in the design, manufacture, and sale of medical, surgical, and diagnostic devices for the use in treating peripheral vascular disease, and oncology and surgical settings in the United States and internationally. The company offers Auryon Atherectomy system that is designed to deliver an optimized wavelength, pulse width, and amplitude to remove lesions while preserving vessel wall endothelium. Its thrombus management portfolio includes AlphaVac mechanical thrombectomy system, an emergent mechanical aspiration device that eliminates the need for perfusionist support; thrombolytic catheters that are used to deliver thrombolytic agents, which are drugs to dissolve blood clots in hemodialysis access grafts, arteries, veins, and surgical bypass grafts; and AngioVac venous drainage cannula and extracorporeal circuit, indicated for extracorporeal circulatory support for periods of up to six hours including off-the-shelf pump, filter, and reinfusion cannula, to facilitate venous drainage as part of an extracorporeal bypass procedure. The company also offers NanoKnife IRE Ablation System, an alternative to traditional thermal ablation for the surgical ablation of soft tissue; and peripheral products, which includes angiographic catheters, and diagnostic and interventional guidewires, percutaneous drainage catheters, and coaxial micro-introducer kits used during peripheral diagnostic and interventional procedures. In addition, it provides drainage catheters for multi-purpose/general, nephrostomy, and biliary drainage; micro-Access kits provides interventional physicians a smaller introducer system for minimally invasive procedures; VenaCure EVLT system that are used in endovascular laser procedures to treat superficial venous disease; and Solero MTA System includes solero microwave generator and the specially designed solero MW applicators. The company was founded in 1988 and is headquartered in Latham, New York.

About InspireMD

InspireMD, Inc., a medical device company, focuses on the development and commercialization of MicroNet stent platform technology for the treatment of vascular and coronary diseases in Europe, Latin America, the Middle East, and Asia Pacific. The company offers CGuard carotid embolic prevention system (EPS) for use in carotid artery applications; CGuard Prime Stent System, a mesh-covered self-expanding carotid stent; and SwitchGuard NPS, a non-invasive transcarotid artery revascularization device; as well as treating acute stroke with tandem lesions. InspireMD, Inc. has a strategic agreement with Jacobs Institute to execute an early feasibility study of CGuard Prime for the treatment of acute stroke patients with tandem lesions. The company sells its products through local distribution partners. InspireMD, Inc. was founded in 2005 and is headquartered in Tel Aviv-Yafo, Israel.