Contrasting Quipt Home Medical (NASDAQ:QIPT) & Brainsway (NASDAQ:BWAY)

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Brainsway and Quipt Home Medical, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brainsway	0	1	2	0	2.67
Quipt Home Medical	2	1	1	0	1.75

Brainsway presently has a consensus price target of $23.50, suggesting a potential upside of 6.29%. Quipt Home Medical has a consensus price target of $3.83, suggesting a potential upside of 7.14%. Given Quipt Home Medical’s higher possible upside, analysts plainly believe Quipt Home Medical is more favorable than Brainsway.

Risk & Volatility

Brainsway has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Quipt Home Medical has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Insider & Institutional Ownership

30.1% of Brainsway shares are held by institutional investors. Comparatively, 42.9% of Quipt Home Medical shares are held by institutional investors. 19.0% of Brainsway shares are held by company insiders. Comparatively, 13.4% of Quipt Home Medical shares are held by company 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 Brainsway and Quipt Home Medical’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%
Quipt Home Medical	-4.38%	-10.13%	-4.27%

Valuation & Earnings

This table compares Brainsway and Quipt Home Medical”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brainsway	$41.02 million	10.55	$2.92 million	$0.30	73.70
Quipt Home Medical	$245.40 million	0.63	-$10.70 million	($0.25)	-14.28

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

Summary

Brainsway beats Quipt Home Medical 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 Quipt Home Medical

Quipt Home Medical Corp., through its subsidiaries, engages in the provision of durable and home medical equipment and supplies in the United States. The company offers nebulizers, oxygen concentrators, and CPAP and BiPAP units; traditional and non-traditional durable medical respiratory equipment and services; non-invasive ventilation equipment, supplies, and services; and engages in the rental of medical equipment. It offers management of various chronic disease states focusing on patients with heart and pulmonary disease, sleep apnea, reduced mobility, and other chronic health conditions. The company was formerly known as Protech Home Medical Corp. and changed its name to Quipt Home Medical Corp. in May 2021. Quipt Home Medical Corp. is headquartered in Wilder, Kentucky.