Treace Medical Concepts (NASDAQ:TMCI – Get Free Report) and BrainsWay (NASDAQ:BWAY – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.
Profitability
This table compares Treace Medical Concepts and BrainsWay’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Treace Medical Concepts | -32.08% | -49.53% | -26.50% |
| BrainsWay | 1.67% | 1.45% | 0.96% |
Volatility & Risk
Treace Medical Concepts has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, BrainsWay has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Treace Medical Concepts | $187.12 million | 1.59 | -$49.53 million | ($1.02) | -4.69 |
| BrainsWay | $36.43 million | 4.68 | -$4.20 million | $0.05 | 204.60 |
BrainsWay has lower revenue, but higher earnings 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.
Analyst Ratings
This is a summary of current recommendations for Treace Medical Concepts and BrainsWay, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Treace Medical Concepts | 0 | 6 | 0 | 0 | 2.00 |
| BrainsWay | 0 | 1 | 3 | 0 | 2.75 |
Treace Medical Concepts presently has a consensus target price of $7.00, suggesting a potential upside of 46.44%. BrainsWay has a consensus target price of $13.17, suggesting a potential upside of 28.71%. Given Treace Medical Concepts’ higher possible upside, research analysts plainly believe Treace Medical Concepts is more favorable than BrainsWay.
Institutional & Insider Ownership
84.1% of Treace Medical Concepts shares are owned by institutional investors. Comparatively, 30.1% of BrainsWay shares are owned by institutional investors. 24.4% of Treace Medical Concepts shares are owned by company insiders. Comparatively, 19.0% of BrainsWay shares are owned by company 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.
Summary
BrainsWay beats Treace Medical Concepts on 10 of the 14 factors compared between the two stocks.
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.
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.
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