Brainsway (NASDAQ:BWAY) vs. Cresco Labs (OTCMKTS:CRLBF) Financial Survey

Cresco Labs (OTCMKTS:CRLBF) and Brainsway (NASDAQ:BWAY) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Cresco Labs and Brainsway, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cresco Labs	1	0	0	1	2.50
Brainsway	0	1	2	1	3.00

Brainsway has a consensus target price of $15.00, suggesting a potential upside of 17.55%. Given Brainsway’s stronger consensus rating and higher probable upside, analysts clearly believe Brainsway is more favorable than Cresco Labs.

Volatility & Risk

Cresco Labs has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, Brainsway has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Earnings and Valuation

This table compares Cresco Labs and Brainsway”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cresco Labs	$655.85 million	0.60	-$135.41 million	($0.39)	-2.00
Brainsway	$52.22 million	9.78	$7.63 million	$0.25	51.04

Brainsway has lower revenue, but higher earnings than Cresco Labs. Cresco Labs 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 Cresco Labs and Brainsway’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cresco Labs	-20.65%	-16.61%	-4.25%
Brainsway	14.62%	11.10%	6.97%

Institutional & Insider Ownership

0.1% of Cresco Labs shares are held by institutional investors. Comparatively, 30.1% of Brainsway shares are held by institutional investors. 19.0% of Brainsway shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Brainsway beats Cresco Labs on 12 of the 14 factors compared between the two stocks.

About Cresco Labs

Cresco Labs Inc., together with its subsidiaries, cultivates, manufactures, and sells retail and medical cannabis products in the United States. It provides cannabis in flowers, vape pens, live resins, disposable pens, and extracts under the Cresco brand; vape carts, vape pens, flower, popcorn, shake, pre-rolls, shorties, and concentrates under the High Supply brand; vapes and gummies under the Good News brand; vapes and edibles under the Wonder Wellness Co. brand; and tinctures, capsules, salves, and sublingual oils under the Remedi brand. The company also offers cannabis flowers under the FloraCal brand; and chocolate and toffee confections and fruit-forward gummies under the Mindy's Edibles brand, as well as licenses the Kiva brand, which produces cannabis infused edibles, including chocolate confections, gummies, mints, and tarts. In addition, the company offers cannabis-infused edibles under the Sunnyside brand. The company was incorporated in 1990 and is headquartered in Chicago, Illinois.

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.