Critical Comparison: INVO Bioscience (NASDAQ:INVO) & BrainsWay (NASDAQ:BWAY)

BrainsWay (NASDAQ:BWAYGet Rating) and INVO Bioscience (NASDAQ:INVOGet Rating) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BrainsWay $29.66 million 2.51 -$6.46 million ($0.21) -21.52
INVO Bioscience $4.16 million 2.59 -$6.66 million N/A N/A

BrainsWay has higher revenue and earnings than INVO Bioscience.

Analyst Recommendations

This is a summary of recent ratings and target prices for BrainsWay and INVO Bioscience, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BrainsWay 0 0 3 0 3.00
INVO Bioscience 0 1 2 0 2.67

BrainsWay presently has a consensus target price of $15.67, suggesting a potential upside of 246.61%. INVO Bioscience has a consensus target price of $2.50, suggesting a potential upside of 180.49%. Given BrainsWay’s stronger consensus rating and higher possible upside, research analysts plainly believe BrainsWay is more favorable than INVO Bioscience.

Volatility & Risk

BrainsWay has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, INVO Bioscience has a beta of -0.38, indicating that its share price is 138% less volatile than the S&P 500.

Insider and Institutional Ownership

69.3% of BrainsWay shares are owned by institutional investors. Comparatively, 21.7% of INVO Bioscience shares are owned by institutional investors. 7.6% of INVO Bioscience shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
BrainsWay -22.48% -12.27% -9.52%
INVO Bioscience -191.70% -137.40% -72.72%

Summary

BrainsWay beats INVO Bioscience on 10 of the 12 factors compared between the two stocks.

BrainsWay Company Profile (Get Rating)

Brainsway Ltd. develops and sells noninvasive neurostimulation treatments for mental health disorders in the United States, Europe, Israel, 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 primarily serves doctors, hospitals, and medical centers in the field of psychiatry. Brainsway Ltd. was founded in 2003 and is headquartered in Jerusalem, Israel.

INVO Bioscience Company Profile (Get Rating)

INVO Bioscience, Inc., a commercial-stage fertility company, provides assisted reproductive technology solutions worldwide. Its flagship product is the INVOcell, a medical device that allows fertilization and early embryo development to take place in vivo within the woman's body. The company was founded in 2007 and is based in Sarasota, Florida.

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