Two small-cap medical companies, Brainsway (NASDAQ:BWAY) and MariMed (OTCMKTS:MRMD), are being evaluated for their potential as investment opportunities. This analysis compares their respective strengths in areas such as analyst recommendations, risk assessment, dividends, institutional ownership, earnings, profitability, and valuation.
Institutional and Insider Ownership
Institutional investors hold 30.1% of Brainsway‘s shares, indicating strong confidence from large money managers and hedge funds in the company’s future growth. In contrast, MariMed has only 0.2% of its shares owned by institutional investors, which may suggest less institutional interest. Both companies have 19.0% of their shares owned by insiders, reflecting a similar level of insider confidence.
Volatility and Risk Assessment
Brainsway has a beta of 1.2, suggesting its share price is approximately 20% more volatile than that of the S&P 500. In comparison, MariMed‘s beta of 1.13 indicates a 13% higher volatility. Investors may want to consider this risk factor when evaluating these stocks.
The analysis also reveals that Brainsway currently has a consensus target price of $30.00, which suggests a potential upside of 37.74%. This optimistic outlook from analysts positions Brainsway as a more favorable option than MariMed.
Valuation and Earnings Comparison
When comparing gross revenue and earnings per share (EPS), Brainsway demonstrates higher earnings but lower revenue than MariMed. The price-to-earnings ratio for MariMed is lower, indicating it is currently perceived as the more affordable stock option.
Profitability metrics further illustrate the differences between the two companies. Brainsway outperforms MariMed in 12 of the 14 factors analyzed, showcasing its stronger financial position.
Company Profiles
Brainsway Ltd., founded in 2003 and headquartered in Jerusalem, Israel, specializes in developing noninvasive neurostimulation treatments for various mental health disorders. Its products include Deep Transcranial Magnetic Stimulation technology aimed at treating conditions such as major depressive disorders, PTSD, and addiction.
Meanwhile, MariMed Inc., incorporated in 2011 and based in Norwood, Massachusetts, focuses on the cultivation, production, and distribution of medicinal and recreational cannabis. The company markets a range of products, including flowers, edibles, and drinks, under various brand names.
In summary, while both Brainsway and MariMed operate in the medical field, Brainsway demonstrates a stronger performance in key financial metrics and analyst recommendations. Investors will need to weigh their options carefully based on these insights.
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