Exagen (NASDAQ:XGN – Get Free Report) and Brainsway (NASDAQ:BWAY – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.
Profitability
This table compares Exagen and Brainsway’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Exagen | -29.49% | -94.37% | -28.96% |
| Brainsway | 15.68% | 12.28% | 7.75% |
Valuation and Earnings
This table compares Exagen and Brainsway”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Exagen | $66.57 million | 1.84 | -$19.95 million | ($0.89) | -5.68 |
| Brainsway | $52.22 million | 12.03 | $7.57 million | $0.35 | 44.84 |
Brainsway has lower revenue, but higher earnings 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.
Volatility & Risk
Exagen has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500. Comparatively, Brainsway has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Exagen and Brainsway, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Exagen | 1 | 0 | 8 | 0 | 2.78 |
| Brainsway | 0 | 1 | 3 | 0 | 2.75 |
Exagen currently has a consensus price target of $9.25, suggesting a potential upside of 82.84%. Brainsway has a consensus price target of $16.00, suggesting a potential upside of 1.94%. Given Exagen’s stronger consensus rating and higher probable upside, research analysts clearly believe Exagen is more favorable than Brainsway.
Institutional & Insider Ownership
75.3% of Exagen shares are held by institutional investors. Comparatively, 30.1% of Brainsway shares are held by institutional investors. 12.6% of Exagen shares are held by company insiders. Comparatively, 19.0% of Brainsway shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Brainsway beats Exagen on 8 of the 14 factors compared between the two stocks.
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.
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.
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