Investors are closely examining the stocks of two small-cap medical companies: Brainsway (NASDAQ: BWAY) and MariMed (OTCMKTS: MRMD). This analysis assesses their potential based on various financial metrics, including institutional ownership, volatility, analyst recommendations, and profitability.
Institutional and Insider Ownership
In terms of institutional ownership, 30.1% of Brainsway shares are held by institutional investors, indicating a strong belief in the company’s long-term growth potential. In contrast, only 0.2% of MariMed shares are held by similar investors. Both companies have 19.0% of their shares held by insiders, suggesting a comparable level of confidence from company executives.
Volatility and Risk Assessment
When examining volatility, Brainsway has a beta of 1.2, indicating that its share price is approximately 20% more volatile than the S&P 500. On the other hand, MariMed has a beta of 1.13, suggesting a 13% higher volatility compared to the benchmark index. This information is crucial for investors assessing risk tolerance and potential price fluctuations in their portfolios.
Analysts currently favor Brainsway, with a consensus target price of $30.00, representing a potential upside of 37.74%. This positive outlook positions Brainsway as a more favorable investment compared to MariMed, which does not have such a robust target price projection.
Valuation and Earnings Comparison
A detailed comparison of financial performance reveals that Brainsway has higher earnings despite reporting lower revenue than MariMed. Furthermore, MariMed is trading at a lower price-to-earnings ratio, making it the more affordable stock currently. This distinction is vital for investors looking for value in their equity selections.
Profitability metrics further illustrate the differences between the two companies. Brainsway outperforms MariMed in 12 out of 14 critical factors analyzed, showcasing its stronger financial health.
Company Profiles
Founded in 2003 and based in Jerusalem, Israel, BrainsWay Ltd. specializes in developing and selling noninvasive neurostimulation treatments for various mental health disorders. Its offerings include technology for treating major depressive disorders, anxiety, and conditions such as schizophrenia and Alzheimer’s disease. The company serves a clientele of doctors, hospitals, and medical centers, contributing to its prominent standing in the mental health sector.
Conversely, MariMed Inc., established in 2011 and located in Norwood, Massachusetts, focuses on the cultivation and distribution of medicinal and recreational cannabis. The company markets a diverse range of products, including flowers, edibles, and beverages under several brand names. Its multifaceted approach to cannabis production positions it uniquely in the growing market.
In conclusion, while both Brainsway and MariMed operate in the medical field, their financial metrics, market positions, and growth potential diverge significantly. Investors seeking opportunities in small-cap medical stocks may find Brainsway to be a more compelling option based on the current analysis.
