Critical Review: Titan Medical (NASDAQ:TMDIF) & BrainsWay (NASDAQ:BWAY)

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

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 and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BrainsWay $34.26 million 2.82 -$4.20 million ($0.09) -64.44
Titan Medical $17.63 million 0.26 $6.95 million $0.05 0.80

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.

Institutional and Insider 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for BrainsWay and Titan Medical, as provided by MarketBeat.

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 target price of $13.00, indicating a potential upside of 124.14%. Given BrainsWay’s higher probable upside, research analysts plainly believe BrainsWay is more favorable than Titan Medical.

Risk and Volatility

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

Summary

BrainsWay beats Titan Medical on 7 of the 13 factors compared between the two stocks.

About BrainsWay

(Get Free Report)

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

(Get Free Report)

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.

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