Reviewing GBS (NYSE:GBS) and InspireMD (NYSE:NSPR)

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

Analyst Recommendations

This is a breakdown of recent recommendations for GBS and InspireMD, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GBS	0	0	0	0	N/A
InspireMD	0	0	1	0	3.00

InspireMD has a consensus target price of $4.50, suggesting a potential upside of 61.87%. Given InspireMD’s higher possible upside, analysts plainly believe InspireMD is more favorable than GBS.

Insider & Institutional Ownership

2.8% of GBS shares are held by institutional investors. Comparatively, 44.8% of InspireMD shares are held by institutional investors. 0.3% of GBS shares are held by company insiders. Comparatively, 29.7% of InspireMD shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares GBS and InspireMD”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GBS	$440,000.00	16.01	-$8.31 million	($0.56)	-0.85
InspireMD	$6.57 million	10.55	-$19.92 million	($0.76)	-3.66

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GBS	N/A	-85.64%	-54.42%
InspireMD	-388.67%	-62.02%	-52.26%

Risk & Volatility

GBS has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, InspireMD has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Summary

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

About GBS

GBS Inc. operates as a biosensor diagnostic technology company in the Asia-Pacific and North America. It offers Saliva Glucose Biosensor, an organic thin-film transistor for diabetes management that measures glucose in saliva. The company also focuses on developing SARS-CoV-2 Biosensor, a biosensor test can be used as a complement to the (RNA) virus detection test; and a biosensor platform comprising of biochemistry, immunology, tumor markers, hormones, and nucleic acid diagnostic modalities. GBS Inc. has a research agreement with Johns Hopkins Bloomberg School of Public Health for the development of saliva-based diagnostic tests. The company was formerly known as Glucose Biosensor Systems (Greater China) Holdings, Inc. and changed its name to GBS Inc. in September 2019. The company was incorporated in 2016 and is headquartered in New York, New York. GBS Inc. is a subsidiary of Life Science Biosensor Diagnostics Pty Ltd.

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.