BrainsWay (NASDAQ:BWAY) & Treace Medical Concepts (NASDAQ:TMCI) Head to Head Comparison

BrainsWay (NASDAQ:BWAY) and Treace Medical Concepts (NASDAQ:TMCI) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Earnings and Valuation

This table compares BrainsWay and Treace Medical Concepts”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BrainsWay	$36.43 million	4.68	-$4.20 million	$0.05	204.60
Treace Medical Concepts	$187.12 million	1.59	-$49.53 million	($1.02)	-4.69

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

Profitability

This table compares BrainsWay and Treace Medical Concepts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BrainsWay	1.67%	1.45%	0.96%
Treace Medical Concepts	-32.08%	-49.53%	-26.50%

Institutional & Insider Ownership

30.1% of BrainsWay shares are held by institutional investors. Comparatively, 84.1% of Treace Medical Concepts shares are held by institutional investors. 19.0% of BrainsWay shares are held by insiders. Comparatively, 24.4% of Treace Medical Concepts shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for BrainsWay and Treace Medical Concepts, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BrainsWay	0	1	3	0	2.75
Treace Medical Concepts	0	6	0	0	2.00

BrainsWay currently has a consensus price target of $13.17, suggesting a potential upside of 28.71%. Treace Medical Concepts has a consensus price target of $7.00, suggesting a potential upside of 46.44%. Given Treace Medical Concepts’ higher possible upside, analysts clearly believe Treace Medical Concepts is more favorable than BrainsWay.

Risk & Volatility

BrainsWay has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Treace Medical Concepts has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500.

Summary

BrainsWay beats Treace Medical Concepts on 10 of the 14 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 Treace Medical Concepts

Treace Medical Concepts, Inc., a medical technology company, designs, manufactures, and markets medical devices in the United States. The company offers Lapiplasty 3D bunion correction system that combines instruments, implants, and surgical methods designed to surgically correct three planes of the bunion deformity. It also provides Lapiplasty mini-incision system designed to allow the Lapiplasty procedure to be performed through a 3.5cm incision. In addition, the company offers Adductoplasty system designed for reproducible realignment, stabilization, and fusion of the midfoot. Treace Medical Concepts, Inc. was founded in 2013 and is headquartered in Ponte Vedra, Florida.