Analyzing Brainsway (NASDAQ:BWAY) and DIH Holding US (OTCMKTS:DHAI)

DIH Holding US (OTCMKTS:DHAI) and Brainsway (NASDAQ:BWAY) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Valuation and Earnings

This table compares DIH Holding US and Brainsway”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DIH Holding US	$62.86 million	0.00	-$8.68 million	($4.94)	-0.00
Brainsway	$52.22 million	11.07	$7.57 million	$0.44	32.69

Brainsway has lower revenue, but higher earnings than DIH Holding US. DIH Holding US 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 DIH Holding US and Brainsway’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DIH Holding US	N/A	N/A	N/A
Brainsway	15.65%	12.74%	8.17%

Risk and Volatility

DIH Holding US has a beta of -6.5, indicating that its stock price is 750% less volatile than the S&P 500. Comparatively, Brainsway has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.

Insider & Institutional Ownership

27.8% of DIH Holding US shares are held by institutional investors. Comparatively, 30.1% of Brainsway shares are held by institutional investors. 27.0% of DIH Holding US shares are held by company insiders. Comparatively, 19.0% of Brainsway shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for DIH Holding US and Brainsway, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DIH Holding US	1	0	0	0	1.00
Brainsway	0	2	5	0	2.71

Brainsway has a consensus price target of $18.20, indicating a potential upside of 26.52%. Given Brainsway’s stronger consensus rating and higher probable upside, analysts clearly believe Brainsway is more favorable than DIH Holding US.

Summary

Brainsway beats DIH Holding US on 12 of the 14 factors compared between the two stocks.

About DIH Holding US

DIH Holding US, Inc. operates as a robotics and virtual reality (VR) technology provider for the rehabilitation industry in Europe, the Middle East, Africa, the United States, and the Asia Pacific. It offers ArmeoPower, a backbone robot for arm and hand therapy in an early stage of rehabilitation; ArmeoSpring for less severe patients that provides self-initiated repetitive arm and hand therapy in an extensive workspace; ArmeoSpring Pro; and Armeo Senso, for patients self-initiated and still structurally controlled movement patterns to completely open movement. The company also provides lower extremity products, including Erigo for gradual verticalization, leg mobilization, and intensive sensorimotor stimulation through cyclic leg loading; Lokomat, a robot-assisted therapy that enables training to increase the strength of muscles and a range of motion of joints in order to improve walking; Andago, a robotics smart control system that assists patients in walking naturally; C-Mill, creates a training environment; CAREN, a computer assisted rehabilitation environment; and GRAIL, an gait real-time analysis interactive lab solution for analysis training and research. In addition, it offers SafeGait, RYSEN, and M-Gait for gait and balance; and HocoNet and D-Flow software. DIH Holding US, Inc. was founded in 2021 and is based in Norwell, Massachusetts.

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.