Brainsway (NASDAQ:BWAY) versus Terumo (OTCMKTS:TRUMY) Financial Analysis

Terumo (OTCMKTS:TRUMY) and Brainsway (NASDAQ:BWAY) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Insider and Institutional Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Terumo	12.35%	9.39%	7.08%
Brainsway	12.73%	9.46%	5.96%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Terumo and Brainsway, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terumo	0	0	0	0	0.00
Brainsway	0	1	2	0	2.67

Brainsway has a consensus price target of $23.50, indicating a potential upside of 37.35%. Given Brainsway’s stronger consensus rating and higher probable upside, analysts clearly believe Brainsway is more favorable than Terumo.

Risk and Volatility

Terumo has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Brainsway has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Valuation and Earnings

This table compares Terumo 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
Terumo	$6.80 billion	3.25	$772.05 million	$0.60	24.91
Brainsway	$41.02 million	8.16	$2.92 million	$0.30	57.03

Terumo has higher revenue and earnings than Brainsway. Terumo 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 Terumo on 10 of the 14 factors compared between the two stocks.

About Terumo

Terumo Corporation engages in the manufacture and sale of medical products and equipment in Japan, Europe, China, the United States, Asia, and internationally. The company operates through three segments: Cardiac and Vascular Company, Medical Care Solutions Company, and Blood and Cell Technologies Company. The Cardiac and Vascular Company segment offers angiographic guidewires, angiographic catheters, introducer sheaths, vascular closure devices, PTCA balloon catheters, coronary stents, self-expanding peripheral stents, intravascular ultrasound systems, imaging catheters, and others; coils, stents, and intrasaccular devices for treating cerebral aneurysm; embolization systems, aspiration catheters, and clot retrievers for treating ischemic stroke and others; oxygenators, cardio-pulmonary bypass systems, and others; and artificial vascular and stent grafts. The Medical Care Solutions Company segment provides syringes, infusion pumps, syringe pumps, infusion lines, I.V. solutions, peritoneal dialysis fluids, pain management and nutritious food products, adhesion barriers, and others; blood glucose monitoring systems, disposable needles for pen-injector, insulin patch pumps, blood pressure monitors, digital thermometers, and others; and contract manufacturing of prefilled syringes, devices to pharmaceutical companies for use in drug kits, such as prefillable syringes, needles for pharmaceutical packaging business, and others. The Blood and Cell Technologies Company segment offers blood bags, component collection systems, automated blood processing systems, pathogen reduction systems, centrifugal apheresis systems, cell expansion systems, and others. The company was formerly known as Sekisen Ken-onki Corporation and changed its name to Terumo Corporation in October 1974. Terumo Corporation was incorporated in 1921 and is headquartered in Tokyo, Japan.

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.