Brainsway (NASDAQ:BWAY) & ResMed (NYSE:RMD) Head-To-Head Review

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

Risk & Volatility

Brainsway has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, ResMed has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Profitability

This table compares Brainsway and ResMed’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%
ResMed	26.94%	25.58%	18.89%

Valuation and Earnings

This table compares Brainsway and ResMed”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	9.63	$7.57 million	$0.44	28.41
ResMed	$5.65 billion	5.45	$1.52 billion	$10.43	20.99

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

Insider and Institutional Ownership

30.1% of Brainsway shares are owned by institutional investors. Comparatively, 55.0% of ResMed shares are owned by institutional investors. 19.0% of Brainsway shares are owned by insiders. Comparatively, 0.6% of ResMed shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Brainsway and ResMed, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brainsway	0	2	5	0	2.71
ResMed	0	9	7	0	2.44

Brainsway presently has a consensus target price of $18.20, suggesting a potential upside of 45.60%. ResMed has a consensus target price of $241.69, suggesting a potential upside of 10.41%. Given Brainsway’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Brainsway is more favorable than ResMed.

Summary

ResMed beats Brainsway on 8 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 ResMed

ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; and NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry over several nights. The company also provides AirView, a cloud-based system that enables remote monitoring and changing of patients’ device settings; myAir, a personalized therapy management application for patients with sleep apnea that provides support, education, and troubleshooting tools for increased patient engagement and improved compliance; U-Sleep, a compliance monitoring solution that enables home medical equipment (HME) to streamline their sleep programs; connectivity module and propeller solutions; and Propeller portal. It offers out-of-hospital software solution, such as Brightree business management software and service solutions to providers of HME, pharmacy, home infusion, orthotics, and prosthetics services; MatrixCare care management and related ancillary solutions to senior living, skilled nursing, life plan communities, home health, home care, and hospice organizations, as well as related accountable care organizations; HEALTHCAREfirst that offers electronic health record, software, billing and coding services, and analytics for home health and hospice agencies; and MEDIFOX DAN’s software solutions. The company markets its products to sleep clinics, home healthcare dealers, and hospitals through a network of distributors and direct sales force. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.