Reviewing BrainsWay (NASDAQ:BWAY) & InspireMD (NYSE:NSPR)

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

Earnings & Valuation

This table compares BrainsWay and InspireMD’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BrainsWay	$31.78 million	2.75	-$4.20 million	($0.13)	-40.38
InspireMD	$6.20 million	8.63	-$19.92 million	($1.08)	-2.11

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

Profitability

This table compares BrainsWay and InspireMD’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BrainsWay	-13.20%	-10.05%	-6.88%
InspireMD	-320.97%	-55.71%	-46.53%

Volatility and Risk

BrainsWay has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, InspireMD has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for BrainsWay and InspireMD, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BrainsWay	0	1	2	0	2.67
InspireMD	0	0	1	0	3.00

BrainsWay currently has a consensus target price of $7.00, suggesting a potential upside of 33.33%. InspireMD has a consensus target price of $4.85, suggesting a potential upside of 112.57%. Given InspireMD’s stronger consensus rating and higher possible upside, analysts clearly believe InspireMD is more favorable than BrainsWay.

Institutional & Insider Ownership

30.1% of BrainsWay shares are owned by institutional investors. Comparatively, 44.8% of InspireMD shares are owned by institutional investors. 19.0% of BrainsWay shares are owned by company insiders. Comparatively, 21.6% of InspireMD shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

BrainsWay beats InspireMD on 8 of the 14 factors compared between the two stocks.

About BrainsWay

Brainsway Ltd. develops and sells noninvasive neurostimulation treatments for mental health disorders in the United States, the Asia Pacific, Europe, 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 InspireMD

InspireMD, Inc., a medical device company, focuses on the development and commercialization of MicroNet stent platform technology for the treatment of vascular and coronary diseases in Europe, Latin America, the Middle East, and Asia Pacific. The company offers CGuard carotid embolic prevention system (EPS) for use in carotid artery applications; CGuard Prime Delivery System, a mesh-covered self-expanding carotid stent; SwitchGuard, a non-invasive transcarotid artery revascularization device; and NGuard EPS for treating acute stroke with tandem lesions. The company sells its products through local distribution partners. InspireMD, Inc. was founded in 2005 and is headquartered in Tel Aviv-Yafo, Israel.