WallStSmart

Inspire Medical Systems Inc (INSP)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 10466% more annual revenue ($96.36B vs $911.98M). JNJ leads profitability with a 21.8% profit margin vs 16.0%. INSP trades at a lower P/E of 10.9x. INSP earns a higher WallStSmart Score of 66/100 (B-).

INSP

Strong Buy

66

out of 100

Grade: B-

Growth: 8.7Profit: 7.5Value: 8.3Quality: 7.3
Piotroski: 3/9Altman Z: 5.12

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

INSPUndervalued (+86.9%)

Margin of Safety

+86.9%

Fair Value

$519.34

Current Price

$53.41

$465.93 discount

UndervaluedFair: $519.34Overvalued
JNJSignificantly Overvalued (-43.5%)

Margin of Safety

-43.5%

Fair Value

$160.13

Current Price

$229.85

$69.72 premium

UndervaluedFair: $160.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

INSP4 strengths · Avg: 9.5/10
P/E RatioValuation
10.9x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
308.4%10/10

Earnings expanding 308.4% YoY

Altman Z-ScoreHealth
5.1210/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$547.28B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Free Cash FlowQuality
$1.47B8/10

Generating 1.5B in free cash flow

Areas to Watch

INSP2 concerns · Avg: 3.0/10
Market CapQuality
$1.54B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
26.3x4/10

Moderate valuation

PEG RatioValuation
2.962/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : INSP

The strongest argument for INSP centers on P/E Ratio, EPS Growth, Altman Z-Score. Profitability is solid with margins at 16.0% and operating margin at 17.1%. Revenue growth of 12.2% demonstrates continued momentum.

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 Market Cap, Piotroski F-Score.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

INSP carries more volatility with a beta of 0.86 — expect wider price swings.

INSP is growing revenue faster at 12.2% — sustainability is the question.

JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.

Monitor MEDICAL DEVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

INSP scores higher overall (66/100 vs 59/100), backed by strong 16.0% margins and 12.2% revenue growth. Both earn "Strong 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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