Comparing Bausch + Lomb (NYSE:BLCO) and Brainsway (NASDAQ:BWAY)

Brainsway (NASDAQ:BWAY) and Bausch + Lomb (NYSE:BLCO) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.

Volatility and Risk

Brainsway has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Bausch + Lomb has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Institutional and Insider Ownership

30.1% of Brainsway shares are held by institutional investors. Comparatively, 11.1% of Bausch + Lomb shares are held by institutional investors. 19.0% of Brainsway shares are held by company insiders. Comparatively, 1.4% of Bausch + Lomb shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Brainsway and Bausch + Lomb, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brainsway	0	2	5	0	2.71
Bausch + Lomb	1	7	5	0	2.31

Brainsway presently has a consensus price target of $16.95, indicating a potential upside of 18.53%. Bausch + Lomb has a consensus price target of $18.75, indicating a potential upside of 8.82%. Given Brainsway’s stronger consensus rating and higher probable upside, research analysts clearly believe Brainsway is more favorable than Bausch + Lomb.

Earnings & Valuation

This table compares Brainsway and Bausch + Lomb”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brainsway	$60.70 million	9.46	$7.57 million	$0.44	32.50
Bausch + Lomb	$5.10 billion	1.21	-$360.00 million	($0.48)	-35.90

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

Profitability

This table compares Brainsway and Bausch + Lomb’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%
Bausch + Lomb	-3.21%	4.14%	1.93%

Summary

Brainsway beats Bausch + Lomb on 12 of the 13 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 Bausch + Lomb

Bausch + Lomb Corporation operates as an eye health company in the United States, Puerto Rico, China, France, Japan, Germany, the United Kingdom, Canada, Russia, Spain, Italy, Mexico, Poland, South Korea, and internationally. It operates in three segments: Vision Care, Pharmaceuticals, and Surgical. The Vision Care segment provides contact lens that covers the spectrum of wearing modalities, including daily disposable and frequently replaced contact lenses; and contact lens care products comprising over-the-counter eye drops, eye vitamins, and mineral supplements that address various conditions, such as eye allergies, conjunctivitis, dry eye, and redness relief. Its Pharmaceuticals segment offers proprietary and generic pharmaceutical products for post-operative treatments, as well as for the treatment of glaucoma, eye inflammation, ocular hypertension, dry eyes, and retinal diseases. The Surgical segment provides medical device equipment, consumables, and technologies for the treatment of cataracts, corneal, vitreous, and retinal eye conditions; and intraocular lenses and delivery systems, phacoemulsification equipment, and other surgical instruments and devices for cataract surgery. The company sells its products and services through direct sales forces and independent distributors. Bausch + Lomb Corporation was founded in 1853 and is headquartered in Vaughan, Canada. Bausch + Lomb Corporation is a subsidiary of Bausch Health Companies Inc.