Investors are closely examining the potential of two small-cap medical companies: Brainsway (NASDAQ: BWAY) and MariMed (OTCMKTS: MRMD). This analysis will compare them on key metrics, including analyst recommendations, risk levels, institutional ownership, earnings, profitability, and overall valuation.
Institutional Ownership Insights
Institutional investors hold 30.1% of Brainsway shares, a significant indicator of confidence from large financial entities in the company’s growth prospects. In stark contrast, only 0.2% of MariMed shares are held by these investors. Both companies feature insider ownership of 19.0%, which highlights a shared belief among executives in their respective firms’ futures.
Volatility and Risk Assessment
Examining the volatility of both stocks reveals differences in risk profiles. Brainsway has a beta of 1.2, indicating its share price is approximately 20% more volatile than the S&P 500. In comparison, MariMed boasts a beta of 1.13, suggesting its stock is 13% more volatile than the market benchmark. This information is critical for risk-averse investors looking for stability.
Analysts have weighed in on the future potential of these stocks. Brainsway currently has a consensus target price of $30.00, indicating a possible upside of 37.74%. This strong forecast positions Brainsway as a more favorable investment compared to MariMed, according to market analysts.
Valuation and Earnings Comparison
When looking at financial metrics, Brainsway shows higher earnings despite lower overall revenue than MariMed. Moreover, MariMed currently trades at a lower price-to-earnings (P/E) ratio compared to Brainsway. This suggests that MariMed may present a more affordable option for investors focused on valuation.
Profitability metrics reveal that Brainsway outperforms MariMed in several categories, including net margins and return on equity. This performance indicates stronger operational efficiency and profitability potential for Brainsway.
In summary, Brainsway excels in 12 out of 14 evaluated factors when compared to MariMed. This analysis underscores its appeal as a more robust investment option within the small-cap medical sector.
Company Profiles
Founded in 2003 and headquartered in Jerusalem, Israel, BrainsWay Ltd. specializes in developing and selling noninvasive neurostimulation treatments for various mental health disorders. Their Deep Transcranial Magnetic Stimulation technology is utilized for conditions such as major depressive disorders, anxiety, obsessive-compulsive disorders, and more.
On the other hand, MariMed Inc., established in 2011 and based in Norwood, Massachusetts, focuses on the cultivation, production, and dispensing of medicinal and recreational cannabis products. The company markets a diverse range of products, including flowers and concentrates, baked goods, and other cannabis-infused items.
As investors consider their options, the comparison of Brainsway and MariMed provides valuable insights into their respective market positions and potential for growth. Each company offers unique strengths, making them noteworthy players in the evolving medical landscape.
