Treace Medical Concepts (NASDAQ:TMCI) versus BrainsWay (NASDAQ:BWAY) Head to Head Contrast

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

Volatility and Risk

Treace Medical Concepts has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500. Comparatively, BrainsWay has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Treace Medical Concepts and BrainsWay”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Treace Medical Concepts	$187.12 million	1.61	-$49.53 million	($1.02)	-4.75
BrainsWay	$36.43 million	4.58	-$4.20 million	($0.09)	-111.33

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

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%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Treace Medical Concepts and BrainsWay, as provided by MarketBeat.

	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 currently has a consensus price target of $7.00, suggesting a potential upside of 45.83%. BrainsWay has a consensus price target of $13.17, suggesting a potential upside of 30.88%. Given Treace Medical Concepts’ higher probable upside, equities research analysts plainly believe Treace Medical Concepts is more favorable than BrainsWay.

Summary

BrainsWay beats Treace Medical Concepts on 9 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.