Titan Medical (NASDAQ:TMDIF) versus BrainsWay (NASDAQ:BWAY) Critical Survey

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

Institutional and Insider Ownership

0.0% of Titan Medical shares are owned by institutional investors. Comparatively, 30.1% of BrainsWay shares are owned by institutional investors. 0.0% of Titan Medical shares are owned by insiders. Comparatively, 19.0% of BrainsWay shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Titan Medical and BrainsWay’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Titan Medical	$17.63 million	0.25	$6.95 million	$0.05	0.76
BrainsWay	$31.78 million	3.22	-$4.20 million	($0.09)	-68.21

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Titan Medical	N/A	142.97%	88.73%
BrainsWay	-4.83%	-3.98%	-2.68%

Volatility & Risk

Titan Medical has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, BrainsWay has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Titan Medical and BrainsWay, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Titan Medical	0	0	0	0	N/A
BrainsWay	0	1	2	0	2.67

BrainsWay has a consensus target price of $13.00, indicating a potential upside of 111.73%. Given BrainsWay’s higher possible upside, analysts clearly believe BrainsWay is more favorable than Titan Medical.

Summary

BrainsWay beats Titan Medical on 7 of the 13 factors compared between the two stocks.

About Titan Medical

Titan Medical Inc. operates as a medical technology company. It focuses on the development and licensing of robotic assisted surgical technologies. The company is headquartered in Toronto, Canada.

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.