Sonoma Pharmaceuticals (NASDAQ: SNOA) and Chiasma (NASDAQ:CHMA) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
Insider and Institutional Ownership
9.2% of Sonoma Pharmaceuticals shares are owned by institutional investors. Comparatively, 54.6% of Chiasma shares are owned by institutional investors. 13.3% of Sonoma Pharmaceuticals shares are owned by company insiders. Comparatively, 3.8% of Chiasma shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Sonoma Pharmaceuticals and Chiasma’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations for Sonoma Pharmaceuticals and Chiasma, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sonoma Pharmaceuticals currently has a consensus target price of $10.50, indicating a potential upside of 94.89%. Given Sonoma Pharmaceuticals’ higher probable upside, equities analysts clearly believe Sonoma Pharmaceuticals is more favorable than Chiasma.
Earnings and Valuation
This table compares Sonoma Pharmaceuticals and Chiasma’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sonoma Pharmaceuticals||$12.82 million||1.85||$9.27 million||$1.78||3.03|
Sonoma Pharmaceuticals has higher revenue and earnings than Chiasma. Chiasma is trading at a lower price-to-earnings ratio than Sonoma Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Sonoma Pharmaceuticals beats Chiasma on 8 of the 11 factors compared between the two stocks.
About Sonoma Pharmaceuticals
Sonoma Pharmaceuticals, Inc., formerly Oculus Innovative Sciences, Inc., is a specialty pharmaceutical company that develops and markets solutions for the treatment of dermatological conditions and advanced tissue care. The Company’s product portfolio consists of dermatology and advanced tissue care products based upon its technologies, such as Microcyn and Lipogrid. Microcyn is a small-molecule oxychlorine compound with antimicrobial and anti-inflammatory properties that, in clinical settings, reduces itch and pain associated with dermal irritations and wounds, such as sores, injuries and ulcers of dermal tissue. Lipogrid Technology contains selected lipids and a lipid precursor designed to penetrate the bilayers of the skin by blending with the natural lipid building blocks. Its products serve over five million patients across the globe by reducing infections, itch, pain, scarring and inflammatory responses. Its products are sold throughout the United States and internationally.
Chiasma, Inc. is a biopharmaceutical company. The Company is engaged in developing and commercializing oral forms of therapies that are available only by injection. Using its Transient Permeability Enhancer (TPE) technology platform, the Company is developing oral therapies. The Company has completed a Phase III clinical trial of its TPE platform-based product candidate, oral octreotide capsules (trade named as MYCAPSSA) for the treatment of acromegaly, a condition that results in the body’s production of excess growth hormone. Octreotide is an analog of somatostatin, a natural inhibitor of growth hormone secretion. The Company is developing octreotide capsules as a liquid-filled solid gelatin capsule formulation, which is intended to be taken over twice a day. The Company’s TPE technology enhances the absorption through the intestinal wall of drugs. The Company also focuses on developing CH2 for Orphan indication.
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