Contrasting CONMED (NYSE:CNMD) and Brainsway (NASDAQ:BWAY)

Brainsway (NASDAQ:BWAY) and CONMED (NYSE:CNMD) are both small-cap healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.

Analyst Ratings

This is a summary of current recommendations for Brainsway and CONMED, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brainsway	0	2	5	0	2.71
CONMED	1	7	0	0	1.88

Brainsway currently has a consensus target price of $18.20, suggesting a potential upside of 37.36%. CONMED has a consensus target price of $41.40, suggesting a potential downside of 10.89%. Given Brainsway’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Brainsway is more favorable than CONMED.

Risk and Volatility

Brainsway has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, CONMED has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Valuation & Earnings

This table compares Brainsway and CONMED”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brainsway	$52.22 million	10.20	$7.57 million	$0.44	30.11
CONMED	$1.37 billion	1.01	$47.06 million	$1.85	25.11

CONMED has higher revenue and earnings than Brainsway. CONMED 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 CONMED’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%
CONMED	4.12%	14.31%	6.33%

Insider & Institutional Ownership

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

Summary

Brainsway beats CONMED on 10 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 CONMED

CONMED Corporation, a medical technology company, develops, manufactures, and sells surgical devices and related equipment for surgical procedures worldwide. The company offers orthopedic surgery products, including BioBrace, TruShot with Y-Knot All-In-One Soft Tissue Fixation System, Y-knot All-Suture Anchors, and Agro Knotless Suture Anchors, which provide clinical solutions to orthopedic surgeons for the augmentation and repair of soft tissue injuries, as well as provides supporting products that enable surgeons to perform minimally invasive sports medicine surgeries. It markets orthopedic surgery products under the Hall, CONMED Linvatec, Concept, and Shutt brands. The company also provides battery-powered and autoclavable bone power tool systems for use in orthopedic, arthroscopic, oral/maxillofacial, podiatric, spinal, and cardiothoracic surgeries under Hall surgical brand name. In addition, it offers general surgery products, including clinical insufflation systems under AirSeal brand; smoke removal devices under Buffalo Filter brand; endomechanical products, such as tissue retrieval bags, trocars, suction irrigation devices, graspers, scissors, and dissectors used in minimally invasive surgeries; and electrosurgical solution comprising monopolar and bipolar generators, argon beam coagulation generators, handpieces, smoke management systems and other accessories. Further, the company provides endoscopic technologies, including therapeutic and diagnostic products for use in gastroenterology procedures, and products for the treatment of diseases of the dilatation, hemostasis, biliary, structure management, and infection prevention and patient monitoring, including ECG and EEG electrodes, and cardiac defibrillation pads. It markets its products directly to hospitals, surgery centers, and other healthcare institutions, as well as through medical specialty distributors. CONMED Corporation was incorporated in 1970 and is headquartered in Largo, Florida.