Inspire Medical Systems Inc (INSP)vsJohnson & Johnson (JNJ)
INSP
Inspire Medical Systems Inc
$41.19
-2.37%
HEALTHCARE · Cap: $1.23B
JNJ
Johnson & Johnson
$232.77
+1.07%
HEALTHCARE · Cap: $536.54B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 10429% more annual revenue ($96.36B vs $915.25M). JNJ leads profitability with a 21.8% profit margin vs 14.3%. INSP trades at a lower P/E of 9.7x. JNJ earns a higher WallStSmart Score of 59/100 (C).
INSP
Buy56
out of 100
Grade: C
JNJ
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+85.3%
Fair Value
$462.74
Current Price
$41.19
$421.55 discount
Margin of Safety
-71.4%
Fair Value
$135.80
Current Price
$232.77
$96.97 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 308.4% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Mega-cap, among the largest globally
Every $100 of equity generates 26 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 27.4%
Generating 1.5B in free cash flow
Areas to Watch
1.6% revenue growth
Smaller company, higher risk/reward
Operating margin of -0.6%
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : INSP
The strongest argument for INSP centers on P/E Ratio, Price/Book, EPS Growth.
Bull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 21.8% and operating margin at 27.4%.
Bear Case : INSP
The primary concerns for INSP are Revenue Growth, Market Cap, Operating Margin.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
INSP profiles as a value stock while JNJ is a mature play — different risk/reward profiles.
INSP carries more volatility with a beta of 0.73 — expect wider price swings.
JNJ is growing revenue faster at 9.9% — sustainability is the question.
JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (59/100 vs 56/100), backed by strong 21.8% margins. INSP offers better value entry with a 85.3% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Inspire Medical Systems Inc
HEALTHCARE · MEDICAL DEVICES · USA
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 Europe. The company is headquartered in Golden Valley, Minnesota.
Johnson & Johnson
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Johnson & Johnson (J&J) is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods. Its common stock is a component of the Dow Jones Industrial Average and the company is ranked No. 36 on the 2021 Fortune 500 list of the largest United States corporations by total revenue. Johnson & Johnson is one of the world's most valuable companies, and is one of only two U.S.-based companies that has a prime credit rating of AAA, higher than that of the United States government.
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