Head to Head Comparison: Spectral AI (NASDAQ:MDAI) vs. InspireMD (NYSE:NSPR)

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

Volatility & Risk

Spectral AI has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500. Comparatively, InspireMD has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Spectral AI	-40.78%	N/A	-77.87%
InspireMD	-413.96%	-69.42%	-57.68%

Earnings & Valuation

This table compares Spectral AI and InspireMD”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectral AI	$18.06 million	2.02	-$20.85 million	($0.65)	-3.02
InspireMD	$6.20 million	13.04	-$19.92 million	($0.75)	-4.13

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

Analyst Ratings

This is a summary of recent recommendations for Spectral AI and InspireMD, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectral AI	0	0	2	1	3.33
InspireMD	0	0	2	0	3.00

Spectral AI currently has a consensus price target of $4.75, indicating a potential upside of 142.35%. InspireMD has a consensus price target of $4.75, indicating a potential upside of 53.23%. Given Spectral AI’s stronger consensus rating and higher probable upside, equities analysts plainly believe Spectral AI is more favorable than InspireMD.

Insider and Institutional Ownership

67.1% of Spectral AI shares are held by institutional investors. Comparatively, 44.8% of InspireMD shares are held by institutional investors. 56.7% of Spectral AI shares are held by insiders. Comparatively, 29.7% of InspireMD shares are held by 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.

Summary

Spectral AI beats InspireMD on 10 of the 14 factors compared between the two stocks.

About Spectral AI

Spectral AI, Inc., an artificial intelligence (AI) company, focuses on developing predictive medical diagnostics in the United States. The company develops medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers. Its products include DeepView System, a predictive analytics platform integrated with the predictive AI-Burn, which combines AI algorithms and multispectral imaging (MSI) imaging for an assessment of wound healing potential and offers clinicians an objective and immediate assessment of a wound’s healing potential prior to treatment or other medical intervention; and DeepView SnapShot M, a handheld, portable, and wireless diagnostic tool, that provides a potential enhanced and expanded use for the government and emergency care, first responders, and potentially home health care professionals. The company is headquartered in Dallas, Texas.

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.