Pulmonx (NASDAQ:LUNG) & Brainsway (NASDAQ:BWAY) Head-To-Head Review

Brainsway (NASDAQ:BWAY) and Pulmonx (NASDAQ:LUNG) are both small-cap healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Risk & Volatility

Brainsway has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Pulmonx has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500.

Earnings and Valuation

This table compares Brainsway and Pulmonx”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brainsway	$52.22 million	8.66	$7.57 million	$0.44	25.55
Pulmonx	$88.78 million	1.46	-$54.00 million	($1.01)	-2.95

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

Institutional & Insider Ownership

30.1% of Brainsway shares are held by institutional investors. Comparatively, 91.0% of Pulmonx shares are held by institutional investors. 19.0% of Brainsway shares are held by company insiders. Comparatively, 7.5% of Pulmonx shares are held by company 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 ratings for Brainsway and Pulmonx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brainsway	0	2	4	0	2.67
Pulmonx	1	0	3	0	2.50

Brainsway presently has a consensus price target of $18.20, indicating a potential upside of 61.92%. Pulmonx has a consensus price target of $7.67, indicating a potential upside of 157.27%. Given Pulmonx’s higher possible upside, analysts clearly believe Pulmonx is more favorable than Brainsway.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brainsway	15.54%	13.35%	8.65%
Pulmonx	-47.93%	-98.23%	-35.89%

Summary

Brainsway beats Pulmonx on 11 of the 14 factors compared between the two stocks.

About Brainsway

BrainsWay Ltd. is an Israel-based medical technology company that develops and commercializes noninvasive treatments for mental health and neurological conditions. Its core technology, Deep Transcranial Magnetic Stimulation (Deep TMS), uses electromagnetic fields and specially designed H-Coils to stimulate brain regions associated with specific conditions. The company’s Deep TMS systems are used for conditions including major depressive disorder, obsessive-compulsive disorder and smoking addiction.

About Pulmonx

Pulmonx Corporation is a medical device company focused on developing minimally invasive treatments for patients with severe emphysema, a form of chronic obstructive pulmonary disease (COPD). The company’s technologies are designed to reduce hyperinflation in damaged portions of the lung and help improve breathing, exercise capacity and quality of life. Pulmonx’s primary product is the Zephyr Endobronchial Valve, a bronchoscopically implanted, one-way valve intended for certain patients with severe emphysema.