Head to Head Contrast: Sanara MedTech (NASDAQ:SMTI) & Brainsway (NASDAQ:BWAY)

Sanara MedTech (NASDAQ:SMTI) 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 analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Insider and Institutional Ownership

8.1% of Sanara MedTech shares are owned by institutional investors. Comparatively, 30.1% of Brainsway shares are owned by institutional investors. 42.0% of Sanara MedTech shares are owned by company insiders. Comparatively, 19.0% of Brainsway shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Sanara MedTech and Brainsway”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sanara MedTech	$107.48 million	1.98	-$37.56 million	($3.77)	-6.15
Brainsway	$56.22 million	10.23	$7.57 million	$0.35	41.00

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

Analyst Recommendations

This is a summary of recent recommendations for Sanara MedTech and Brainsway, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sanara MedTech	1	1	2	0	2.25
Brainsway	0	1	3	0	2.75

Sanara MedTech currently has a consensus price target of $34.00, indicating a potential upside of 46.61%. Brainsway has a consensus price target of $16.00, indicating a potential upside of 11.49%. Given Sanara MedTech’s higher probable upside, equities analysts clearly believe Sanara MedTech is more favorable than Brainsway.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sanara MedTech	-31.23%	-3.19%	-0.56%
Brainsway	15.68%	12.28%	7.75%

Risk & Volatility

Sanara MedTech has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Brainsway has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.

Summary

Brainsway beats Sanara MedTech on 10 of the 14 factors compared between the two stocks.

About Sanara MedTech

Sanara MedTech Inc., a medical technology company, develops, markets, and distributes surgical, wound, and skincare products and services to physicians, hospitals, clinics, and post-acute care settings in the United States. The company offers CellerateRX Surgical, a medical hydrolysate of Type I bovine collagen indicated for the management of surgical, traumatic, and partial- and full-thickness wounds, as well as first- and second-degree burns; and HYCOL, a medical hydrolysate of Type I bovine collagen intended for the management of full and partial thickness wounds, including pressure ulcers, venous and arterial leg ulcers, and diabetic foot ulcers. It also provides BIAKOS Antimicrobial Skin and Wound Cleanser, a patented product that contains synergistic ingredients that have been shown to impact mature biofilm microbes; BIAKOS Antimicrobial Wound Gel, an antimicrobial hydrogel wound dressing that helps against planktonic microbes, as well as immature and mature biofilms; and BIAKOS Antimicrobial Skin and Wound Irrigation Solution. In addition, it develops BIASURGE, a no-rinse surgical solution used for wound irrigation; FORTIFY TRG, a freeze-dried, multi-layer small intestinal submucosa extracellular matrix sheet; FORTIFY FLOWABLE extracellular matrix, an advanced wound care device; TEXAGEN, a multi-layer amniotic membrane allograft used as an anatomical barrier with robust handling that can be sutured for securement; and VIM Amnion Matrix, a homologous wound covering product. Sanara MedTech Inc. was incorporated in 2001 and is based in Fort Worth, Texas.

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.