Financial Analysis: Inspire Medical Systems (NYSE:INSP) and PPJ Enterprise (OTCMKTS:PPJE)

Inspire Medical Systems (NYSE:INSP) and PPJ Enterprise (OTCMKTS:PPJE) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings and price targets for Inspire Medical Systems and PPJ Enterprise, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inspire Medical Systems	3	13	4	0	2.05
PPJ Enterprise	0	0	0	0	0.00

Inspire Medical Systems currently has a consensus target price of $81.84, suggesting a potential upside of 97.40%. Given Inspire Medical Systems’ stronger consensus rating and higher possible upside, equities analysts clearly believe Inspire Medical Systems is more favorable than PPJ Enterprise.

Volatility & Risk

Inspire Medical Systems has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, PPJ Enterprise has a beta of -0.27, meaning that its share price is 127% less volatile than the S&P 500.

Valuation and Earnings

This table compares Inspire Medical Systems and PPJ Enterprise”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inspire Medical Systems	$911.98 million	1.31	$145.42 million	$4.49	9.23
PPJ Enterprise	$670,000.00	0.00	$10,000.00	N/A	N/A

Inspire Medical Systems has higher revenue and earnings than PPJ Enterprise.

Institutional & Insider Ownership

94.9% of Inspire Medical Systems shares are owned by institutional investors. 2.2% of Inspire Medical Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Inspire Medical Systems and PPJ Enterprise’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Inspire Medical Systems	14.33%	10.35%	8.81%
PPJ Enterprise	N/A	N/A	N/A

Summary

Inspire Medical Systems beats PPJ Enterprise on 11 of the 11 factors compared between the two stocks.

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.

About PPJ Enterprise

PPJ Healthcare Enterprises, Inc., through its subsidiaries, provides automated healthcare reimbursement cycle, online health information digital-systems, and practice information management digital-system software to health care providers and general businesses worldwide. The company offers the Automated Biller, a medical billing system that allows physicians to bill their medical insurance claims at the point of service without data entry, coding, or billing personnel. It also provides billing, specialty medical billing, collection, and workers comp lien collection services for health care providers in the areas of pain management, anesthesia and surgery centers practices, and various specialties of medicine. The company was formerly known as PPJ Enterprise and changed its name to PPJ Healthcare Enterprises, Inc. in October 2014. PPJ Healthcare Enterprises, Inc. was founded in 2000 and is headquartered in Reno, Nevada.