Brainsway (NASDAQ:BWAY – Get Free Report) and Exagen (NASDAQ:XGN – Get Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.
Risk and Volatility
Brainsway has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Exagen has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and target prices for Brainsway and Exagen, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brainsway | 0 | 1 | 3 | 0 | 2.75 |
| Exagen | 1 | 0 | 8 | 0 | 2.78 |
Institutional & Insider Ownership
30.1% of Brainsway shares are owned by institutional investors. Comparatively, 75.3% of Exagen shares are owned by institutional investors. 19.0% of Brainsway shares are owned by company insiders. Comparatively, 12.6% of Exagen shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Brainsway and Exagen”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 | 12.03 | $7.57 million | $0.35 | 44.84 |
| Exagen | $66.57 million | 1.84 | -$19.95 million | ($0.89) | -5.68 |
Brainsway has higher earnings, but lower revenue than Exagen. Exagen 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 Exagen’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Brainsway | 15.68% | 12.28% | 7.75% |
| Exagen | -29.49% | -94.37% | -28.96% |
Summary
Brainsway beats Exagen 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 Exagen
Exagen Inc. develops and commercializes various testing products under the AVISE brand in the United States. The company enables healthcare providers to care for patients through the diagnosis, prognosis, and monitoring of autoimmune and autoimmune-related diseases, including systemic lupus erythematosus (SLE) and rheumatoid arthritis (RA). Its lead testing product is AVISE CTD that enables differential diagnosis for patients presenting with symptoms indicative of various connective tissue diseases (CTDs) and other related diseases with overlapping symptoms. The company offers AVISE Lupus that measures activation of the complement system by quantifying the level of B-cell C4d and erythrocyte bound C4d in the patient's blood; and AVISE APS, which consists of a panel of autoantibody tests that aids in the diagnosis and management of APS. In addition, it provides AVISE Vasculitis AAV, which utilizes a testing panel of individual analytes to provide physicians with results in the assessment and monitoring of anti-neutrophil cytoplasmic antibody associated vasculitis; AVISE SLE Prognostic, a panel of autoantibodies for assessing the potential for complications affecting the kidney, brain, and cardiovascular system; and AVISE Anti-CarP test, which identifies RA patients with severe disease. Further, the company offers AVISE SLE Monitor, a biomarker blood test; AVISE MTX, a patented and validated blood test; and AVISE HCQ, a blood test to monitor levels of hydroxychloroquine. It has a research collaboration and license agreement with Allegheny Health Network (AHN) Research Institute to develop novel patented biomarkers. The company was formerly known as Exagen Diagnostics, Inc. and changed its name to Exagen Inc. in January 2019. Exagen Inc. was incorporated in 2002 and is headquartered in Vista, California.
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