NovaBay Pharmaceuticals (NYSE: NBY) and Fibrocell Science (NASDAQ:FCSC) are both small-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Analyst Recommendations

This is a summary of current ratings for NovaBay Pharmaceuticals and Fibrocell Science, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NovaBay Pharmaceuticals 0 1 4 0 2.80
Fibrocell Science 0 0 3 0 3.00

NovaBay Pharmaceuticals presently has a consensus target price of $7.00, suggesting a potential upside of 57.30%. Fibrocell Science has a consensus target price of $5.53, suggesting a potential upside of 103.43%. Given Fibrocell Science’s stronger consensus rating and higher possible upside, analysts clearly believe Fibrocell Science is more favorable than NovaBay Pharmaceuticals.

Profitability

This table compares NovaBay Pharmaceuticals and Fibrocell Science’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NovaBay Pharmaceuticals -42.16% -184.30% -56.33%
Fibrocell Science N/A -293.07% -91.03%

Earnings and Valuation

This table compares NovaBay Pharmaceuticals and Fibrocell Science’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NovaBay Pharmaceuticals $15.34 million 4.44 -$9.47 million N/A N/A
Fibrocell Science $252,000.00 158.85 -$18.04 million ($1.96) -1.39

NovaBay Pharmaceuticals has higher revenue and earnings than Fibrocell Science.

Institutional and Insider Ownership

54.7% of Fibrocell Science shares are owned by institutional investors. 2.1% of Fibrocell Science shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Fibrocell Science beats NovaBay Pharmaceuticals on 6 of the 11 factors compared between the two stocks.

About NovaBay Pharmaceuticals

NovaBay Pharmaceuticals, Inc., formerly NovaCal Pharmaceuticals, Inc., is a biopharmaceutical company, which develops products for the eye care market. The Company focuses on commercializing prescription Avenova for managing hygiene of the eyelids and lashes in the United States. Avenova is an eye care product formulated with a form of hypochlorous acid called Neutrox. Its Avenova with Neutrox removes debris from the skin on the eyelids and lashes without burning or stinging. It develops additional products containing Neutrox, including its NeutroPhase Skin and Wound Cleanser for wound care and CelleRx for the dermatology market. Its Aganocide compounds, led by auriclosene (NVC-422), are synthetic molecules with activity against bacteria, viruses and fungi. The Company’s dermatology product includes CelleRx, a cleansing solution for post laser resurfacing, chemical peels and other cosmetic surgery procedures. Its wound care business includes the business of NeutroPhase product.

About Fibrocell Science

Fibrocell Science, Inc. is an autologous cell and gene therapy company. The Company is focused on discovering and developing localized therapies for diseases affecting the skin, connective tissue and joints. Its product candidate, azficel-T, is in development to treat patients suffering from vocal cord scarring that is either idiopathic or age-related. It is investigating the indication in a Phase II clinical trial. Its gene-therapy product candidate, FCX-007, is in pre-clinical development for the treatment of recessive dystrophic epidermolysis bullosa. Its gene-therapy product candidate, FCX-013, is in pre-clinical development for the treatment of linear scleroderma. Its product, LAVIV (azficel-T), is indicated for the improvement of the appearance of moderate to severe nasolabial fold wrinkles in adults. A third gene-therapy program is focused on the treatment of arthritis. Its product, LAVIV (azficel-T), is focused on improving the appearance of nasolabial fold wrinkles in adults.

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