Head-To-Head Contrast: Brainsway (NASDAQ:BWAY) & Pulmonx (NASDAQ:LUNG)

Brainsway (NASDAQ:BWAY) and Pulmonx (NASDAQ:LUNG) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brainsway	$52.22 million	8.59	$7.57 million	$0.44	25.34
Pulmonx	$90.50 million	1.21	-$54.00 million	($1.01)	-2.53

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

Risk & Volatility

Brainsway has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, Pulmonx has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500.

Institutional & Insider Ownership

30.1% of Brainsway shares are owned by institutional investors. Comparatively, 91.0% of Pulmonx shares are owned by institutional investors. 19.0% of Brainsway shares are owned by company insiders. Comparatively, 7.5% of Pulmonx shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brainsway	15.65%	12.74%	8.17%
Pulmonx	-47.93%	-91.79%	-35.07%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Brainsway and Pulmonx, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brainsway	0	2	5	0	2.71
Pulmonx	1	0	3	0	2.50

Brainsway presently has a consensus price target of $18.20, suggesting a potential upside of 63.23%. Pulmonx has a consensus price target of $7.67, suggesting a potential upside of 199.48%. Given Pulmonx’s higher probable upside, analysts clearly believe Pulmonx is more favorable than Brainsway.

Summary

Brainsway beats Pulmonx on 11 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 Pulmonx

Pulmonx Corporation, a commercial-stage medical technology company, provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases. The company offers Zephyr Endobronchial Valve, a solution for the treatment of patients with hyperinflation associated with severe emphysema; and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation. It also offers StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis service that offers information on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes for the treatment with Zephyr Valves. The company serves emphysema patients in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company was formerly known as Pulmonx and changed its name to Pulmonx Corporation in December 2013. Pulmonx Corporation was incorporated in 1995 and is headquartered in Redwood City, California.