Green Thumb Industries (OTCMKTS:GTBIF – Get Free Report) and Brainsway (NASDAQ:BWAY – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Risk and Volatility
Green Thumb Industries has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Brainsway has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.
Valuation and Earnings
This table compares Green Thumb Industries and Brainsway”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Green Thumb Industries | $1.18 billion | 1.27 | $114.15 million | $0.54 | 14.11 |
| Brainsway | $52.22 million | 11.01 | $7.57 million | $0.44 | 32.50 |
Green Thumb Industries has higher revenue and earnings than Brainsway. Green Thumb Industries is trading at a lower price-to-earnings ratio than Brainsway, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
0.1% of Green Thumb Industries shares are owned by institutional investors. Comparatively, 30.1% of Brainsway shares are owned by institutional investors. 9.4% of Green Thumb Industries 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 stock is poised for long-term growth.
Profitability
This table compares Green Thumb Industries and Brainsway’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Green Thumb Industries | 10.48% | 6.03% | 4.09% |
| Brainsway | 15.65% | 12.74% | 8.17% |
Analyst Recommendations
This is a summary of current ratings and target prices for Green Thumb Industries and Brainsway, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Green Thumb Industries | 0 | 1 | 1 | 1 | 3.00 |
| Brainsway | 0 | 2 | 5 | 0 | 2.71 |
Green Thumb Industries currently has a consensus target price of $18.00, suggesting a potential upside of 136.22%. Brainsway has a consensus target price of $16.95, suggesting a potential upside of 18.53%. Given Green Thumb Industries’ stronger consensus rating and higher probable upside, equities analysts clearly believe Green Thumb Industries is more favorable than Brainsway.
Summary
Brainsway beats Green Thumb Industries on 8 of the 15 factors compared between the two stocks.
About Green Thumb Industries
Green Thumb Industries Inc. manufactures, distributes, markets, and sells of cannabis products for medical and adult-use in the United States. It operates through two segments, Retail and Consumer Packaged Goods. The company offers cannabis flower; processed and packaged products, including pre-rolls, concentrates, vapes, capsules, tinctures, edibles, topicals, and other cannabis-related products under the &Shine, Beboe, Dogwalkers, Doctor Solomon's, Good Green, incredibles, and RHYTHM brands. It distributes its products primarily to third-party retail customers and sells finished products directly to consumers in its own retail stores, as well as direct-to consumer delivery channel. Green Thumb Industries Inc. was founded in 2014 and is headquartered in Chicago, Illinois.
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.
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