BrainsWay (NASDAQ:BWAY) and GBS (NYSE:GBS) Head-To-Head Survey

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

Institutional & Insider Ownership

30.1% of BrainsWay shares are owned by institutional investors. Comparatively, 2.8% of GBS shares are owned by institutional investors. 19.0% of BrainsWay shares are owned by insiders. Comparatively, 0.3% of GBS shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for BrainsWay and GBS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BrainsWay	0	1	2	0	2.67
GBS	0	0	0	0	N/A

BrainsWay presently has a consensus price target of $13.00, indicating a potential upside of 121.84%. Given BrainsWay’s higher possible upside, research analysts plainly believe BrainsWay is more favorable than GBS.

Volatility & Risk

BrainsWay has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, GBS has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Earnings and Valuation

This table compares BrainsWay and GBS’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BrainsWay	$34.26 million	2.85	-$4.20 million	($0.09)	-65.11
GBS	$440,000.00	62.03	-$8.31 million	($0.56)	-3.27

BrainsWay has higher revenue and earnings than GBS. BrainsWay 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 BrainsWay and GBS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BrainsWay	-4.83%	-3.98%	-2.68%
GBS	N/A	-85.64%	-54.42%

Summary

BrainsWay beats GBS on 9 of the 13 factors compared between the two stocks.

About BrainsWay

BrainsWay Ltd. develops and sells noninvasive neurostimulation treatments for mental health disorders in the United States and internationally. It offers Deep Transcranial Magnetic Stimulation platform technology for the treatment of major depressive disorders, anxious depression, obsessive-compulsive disorders, smoking addiction, bipolar disorders, post traumatic stress disorders, schizophrenia, Alzheimer's disease, autism, chronic pain, multiple sclerosis, post stroke rehabilitation, and Parkinson's diseases. The company serves doctors, hospitals, and medical centers in the field of psychiatry. BrainsWay Ltd. was founded in 2003 and is headquartered in Jerusalem, Israel.

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.