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

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

Volatility & Risk

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

Profitability

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

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

Institutional and Insider Ownership

44.8% of InspireMD shares are owned by institutional investors. Comparatively, 30.1% of BrainsWay shares are owned by institutional investors. 21.6% of InspireMD 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 company is poised for long-term growth.

Analyst Recommendations

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

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

InspireMD presently has a consensus target price of $4.85, indicating a potential upside of 112.57%. BrainsWay has a consensus target price of $7.00, indicating a potential upside of 33.33%. Given InspireMD’s stronger consensus rating and higher probable upside, equities research analysts plainly believe InspireMD is more favorable than BrainsWay.

Valuation and Earnings

This table compares InspireMD and BrainsWay’s revenue, earnings per share (EPS) and valuation.

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

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.

Summary

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

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.

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.