ESTA vs ALGN vs INMD

For growth investors, Establishment Labs Holdings Inc.

(ESTA) is the stronger pick with 27. 1% revenue growth year-over-year, versus -6. 2% for InMode Ltd. (INMD). InMode Ltd. (INMD) offers the better valuation at 9. 7x trailing P/E (9. 6x forward), making it the more compelling value choice. Analysts rate Establishment Labs Holdings Inc. (ESTA) a "Buy" — based on 14 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, InMode Ltd.

(INMD) is the cheapest at 9. 7x versus Align Technology, Inc. at 29. 8x. On forward P/E, InMode Ltd. is actually cheaper at 9. 6x.

Over the past 5 years, Establishment Labs Holdings Inc.

(ESTA) delivered a total return of +0. 6%, compared to -71. 9% for Align Technology, Inc. (ALGN). Over 10 years, the gap is even starker: ESTA returned +191. 0% versus INMD's +105. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), InMode Ltd.

(INMD) is the lower-risk stock at 1. 04β versus Align Technology, Inc. 's 1. 66β — meaning ALGN is approximately 60% more volatile than INMD relative to the S&P 500. On balance sheet safety, InMode Ltd. (INMD) carries a lower debt/equity ratio of 2% versus 11% for Establishment Labs Holdings Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Establishment Labs Holdings Inc.

(ESTA) is pulling ahead at 27. 1% versus -6. 2% for InMode Ltd. (INMD). On earnings-per-share growth, the picture is similar: Establishment Labs Holdings Inc. grew EPS 42. 7% year-over-year, compared to -36. 4% for InMode Ltd.. Over a 3-year CAGR, ESTA leads at 9. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

InMode Ltd.

(INMD) is the more profitable company, earning 25. 3% net margin versus -24. 2% for Establishment Labs Holdings Inc. — meaning it keeps 25. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: INMD leads at 23. 0% versus -18. 5% for ESTA. At the gross margin level — before operating expenses — INMD leads at 78. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, InMode Ltd.

(INMD) trades at 9. 6x forward P/E versus 14. 9x for Align Technology, Inc. — 5. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ALGN: 20. 9% to $203. 60.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, InMode Ltd.

(INMD) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 04), +105. 0% 10Y return). Align Technology, Inc. (ALGN) carries a higher beta of 1. 66 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (INMD: +105. 0%, ALGN: +122. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: ESTA is a small-cap high-growth stock; ALGN is a mid-cap quality compounder stock; INMD is a small-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.