Reviewing BrainsWay (NASDAQ:BWAY) & Embecta (NASDAQ:EMBC)

Embecta (NASDAQ:EMBC) and BrainsWay (NASDAQ:BWAY) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Volatility and Risk

Embecta has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, BrainsWay has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Valuation and Earnings

This table compares Embecta and BrainsWay”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embecta	$1.11 billion	0.61	$78.30 million	$0.90	12.88
BrainsWay	$41.02 million	4.73	-$4.20 million	$0.17	60.41

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

Institutional and Insider Ownership

93.8% of Embecta shares are held by institutional investors. Comparatively, 30.1% of BrainsWay shares are held by institutional investors. 0.4% of Embecta shares are held by insiders. Comparatively, 19.0% of BrainsWay shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Embecta and BrainsWay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Embecta	5.25%	-19.22%	11.92%
BrainsWay	3.88%	3.52%	2.26%

Analyst Recommendations

This is a breakdown of recent recommendations for Embecta and BrainsWay, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embecta	0	2	1	0	2.33
BrainsWay	0	0	2	0	3.00

Embecta currently has a consensus price target of $20.33, indicating a potential upside of 75.44%. BrainsWay has a consensus price target of $14.25, indicating a potential upside of 38.75%. Given Embecta’s higher probable upside, equities analysts plainly believe Embecta is more favorable than BrainsWay.

About Embecta

Embecta Corp., a medical device company, focuses on the provision of various solutions to enhance the health and wellbeing of people living with diabetes. Its products include pen needles, syringes, and safety injection devices, as well as digital applications to assist people with managing patient's diabetes. The company primarily sells its products to wholesalers and distributors in the United States and internationally. Embecta Corp. was founded in 1924 and is headquartered in Parsippany, New Jersey.

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.