Analyzing GBS (NYSE:GBS) and BrainsWay (NASDAQ:BWAY)

GBS (NYSE:GBS) and BrainsWay (NASDAQ:BWAY) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Risk & Volatility

GBS has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, BrainsWay has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.

Valuation and Earnings

This table compares GBS and BrainsWay’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GBS	$440,000.00	60.24	-$8.31 million	($0.56)	-3.18
BrainsWay	$31.78 million	3.23	-$4.20 million	($0.09)	-68.33

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

Insider & Institutional Ownership

2.8% of GBS shares are owned by institutional investors. Comparatively, 30.1% of BrainsWay shares are owned by institutional investors. 0.3% of GBS shares are owned by insiders. Comparatively, 19.0% of BrainsWay shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for GBS and BrainsWay, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GBS	0	0	0	0	N/A
BrainsWay	0	1	2	0	2.67

BrainsWay has a consensus target price of $13.00, suggesting a potential upside of 111.38%. Given BrainsWay’s higher probable upside, analysts clearly believe BrainsWay is more favorable than GBS.

Profitability

This table compares GBS and BrainsWay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GBS	N/A	-85.64%	-54.42%
BrainsWay	-4.83%	-3.98%	-2.68%

Summary

BrainsWay beats GBS on 9 of the 13 factors compared between the two stocks.

About GBS

GBS Inc. operates as a biosensor diagnostic technology company in the Asia-Pacific and North America. It offers Saliva Glucose Biosensor, an organic thin-film transistor for diabetes management that measures glucose in saliva. The company also focuses on developing SARS-CoV-2 Biosensor, a biosensor test can be used as a complement to the (RNA) virus detection test; and a biosensor platform comprising of biochemistry, immunology, tumor markers, hormones, and nucleic acid diagnostic modalities. GBS Inc. has a research agreement with Johns Hopkins Bloomberg School of Public Health for the development of saliva-based diagnostic tests. The company was formerly known as Glucose Biosensor Systems (Greater China) Holdings, Inc. and changed its name to GBS Inc. in September 2019. The company was incorporated in 2016 and is headquartered in New York, New York. GBS Inc. is a subsidiary of Life Science Biosensor Diagnostics Pty Ltd.

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.