Head to Head Review: BrainsWay (NASDAQ:BWAY) & Titan Medical (NASDAQ:TMDIF)

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

Profitability

This table compares BrainsWay and Titan Medical’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%
Titan Medical	N/A	142.97%	88.73%

Valuation & Earnings

This table compares BrainsWay and Titan Medical’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BrainsWay	$31.78 million	3.22	-$4.20 million	($0.09)	-68.21
Titan Medical	$17.63 million	0.25	$6.95 million	$0.05	0.76

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

Risk & Volatility

BrainsWay has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Titan Medical has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for BrainsWay and Titan Medical, as reported by MarketBeat.com.

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

BrainsWay currently has a consensus price target of $13.00, suggesting a potential upside of 111.73%. Given BrainsWay’s higher probable upside, equities research analysts plainly believe BrainsWay is more favorable than Titan Medical.

Insider & Institutional Ownership

30.1% of BrainsWay shares are held by institutional investors. Comparatively, 0.0% of Titan Medical shares are held by institutional investors. 19.0% of BrainsWay shares are held by company insiders. Comparatively, 0.0% of Titan Medical shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

BrainsWay beats Titan Medical on 7 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 Titan Medical

Titan Medical Inc. operates as a medical technology company. It focuses on the development and licensing of robotic assisted surgical technologies. The company is headquartered in Toronto, Canada.