Analyzing Brainsway (NASDAQ:BWAY) & MariMed (OTCMKTS:MRMD)

Brainsway (NASDAQ:BWAY) and MariMed (OTCMKTS:MRMD) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.

Risk and Volatility

Brainsway has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, MariMed has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Valuation and Earnings

This table compares Brainsway and MariMed”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brainsway	$41.02 million	10.83	$2.92 million	$0.30	75.63
MariMed	$157.96 million	0.22	-$12.16 million	($0.04)	-2.21

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

Profitability

This table compares Brainsway and MariMed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brainsway	12.73%	9.46%	5.96%
MariMed	-11.36%	-14.67%	-4.12%

Institutional and Insider Ownership

30.1% of Brainsway shares are held by institutional investors. Comparatively, 0.2% of MariMed shares are held by institutional investors. 19.0% of Brainsway shares are held by insiders. Comparatively, 19.0% of MariMed shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Brainsway and MariMed, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brainsway	0	1	2	0	2.67
MariMed	0	2	0	1	2.67

Brainsway presently has a consensus price target of $30.00, suggesting a potential upside of 32.22%. Given Brainsway’s higher probable upside, analysts plainly believe Brainsway is more favorable than MariMed.

Summary

Brainsway beats MariMed on 12 of the 14 factors compared between the two stocks.

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.

About MariMed

MariMed Inc. engages in cultivation, production, and dispensing of medicinal and recreational cannabis in the United States and internationally. The company sells flowers and concentrates under the Nature’s Heritage brand; and soft and chewy baked goods and a hot chocolate mix under Bubby’s Baked brand; and drink mix under Vibations brand. It also offers chewable cannabis-infused mint tablet under the brand Kalm Fusion; and flower, vapes, and edibles under InHouse brand. In addition, the company provides supplement, nutrient-infused fruit chews under Betty’s Eddies brand and ice creams under Emack & Bolio’s brand. The company licenses its brands. MariMed Inc. was incorporated in 2011 and is based in Norwood, Massachusetts.