Analyzing Cerus (NASDAQ:CERS) and InspireMD (NYSE:NSPR)

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

Profitability

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

Net Margins Return on Equity Return on Assets
InspireMD -388.67% -62.02% -52.26%
Cerus -14.15% -44.27% -11.54%

Analyst Recommendations

This is a breakdown of current ratings and target prices for InspireMD and Cerus, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
InspireMD 0 0 1 0 3.00
Cerus 0 1 2 0 2.67

InspireMD currently has a consensus target price of $4.50, indicating a potential upside of 61.87%. Cerus has a consensus target price of $3.83, indicating a potential upside of 112.96%. Given Cerus’ higher probable upside, analysts plainly believe Cerus is more favorable than InspireMD.

Earnings & Valuation

This table compares InspireMD and Cerus”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
InspireMD $6.57 million 10.55 -$19.92 million ($0.76) -3.66
Cerus $169.98 million 1.96 -$37.49 million ($0.17) -10.59

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

Institutional & Insider Ownership

44.8% of InspireMD shares are owned by institutional investors. Comparatively, 78.4% of Cerus shares are owned by institutional investors. 29.7% of InspireMD shares are owned by company insiders. Comparatively, 3.4% of Cerus shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

InspireMD has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Cerus has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Summary

Cerus beats InspireMD on 9 of the 14 factors compared between the two stocks.

About InspireMD

(Get Free Report)

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.

About Cerus

(Get Free Report)

Cerus Corporation operates as a biomedical products company. The company focuses on developing and commercializing the INTERCEPT Blood System to enhance blood safety. Its INTERCEPT Blood System, a proprietary technology for controlling biological replication that is designed to reduce blood-borne pathogens in donated blood components intended for transfusion. The company offers INTERCEPT Blood Systems for platelets and plasma, which is designed to inactivate blood-borne pathogens in platelets and plasma donated for transfusion; INTERCEPT Blood System for red blood cells to inactivate blood-borne pathogens in red blood cells donated for transfusion; and INTERCEPT Blood System for Cryoprecipitation that uses its plasma system to produce pathogen reduced cryoprecipitated fibrinogen complex for the treatment and control of bleeding, including massive hemorrhage associated with fibrinogen deficiency, as well as pathogen reduced plasma, cryoprecipitate reduced. It sells platelet and plasma systems through its direct sales force and distributors in the United States, Europe, the Commonwealth of Independent States, the Middle East, Latin America, and internationally. Cerus Corporation was incorporated in 1991 and is headquartered in Concord, California.

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