NovoCure (NASDAQ:NVCR – Get Free Report) and Sonoma Pharmaceuticals (NASDAQ:SNOA – Get Free Report) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.
Insider & Institutional Ownership
84.6% of NovoCure shares are owned by institutional investors. Comparatively, 2.0% of Sonoma Pharmaceuticals shares are owned by institutional investors. 6.3% of NovoCure shares are owned by insiders. Comparatively, 3.9% of Sonoma Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and price targets for NovoCure and Sonoma Pharmaceuticals, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
NovoCure | 0 | 2 | 4 | 0 | 2.67 |
Sonoma Pharmaceuticals | 0 | 0 | 0 | 0 | 0.00 |
Risk & Volatility
NovoCure has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Sonoma Pharmaceuticals has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500.
Earnings and Valuation
This table compares NovoCure and Sonoma Pharmaceuticals”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
NovoCure | $605.22 million | 2.83 | -$207.04 million | ($1.56) | -9.99 |
Sonoma Pharmaceuticals | $13.97 million | 0.26 | -$4.84 million | ($4.02) | -0.55 |
Sonoma Pharmaceuticals has lower revenue, but higher earnings than NovoCure. NovoCure is trading at a lower price-to-earnings ratio than Sonoma Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares NovoCure and Sonoma Pharmaceuticals’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
NovoCure | -25.93% | -41.48% | -12.74% |
Sonoma Pharmaceuticals | -26.82% | -68.98% | -26.39% |
Summary
NovoCure beats Sonoma Pharmaceuticals on 11 of the 14 factors compared between the two stocks.
About NovoCure
NovoCure Limited, an oncology company, engages in the development, manufacture, and commercialization of tumor treating fields (TTFields) devices for the treatment of solid tumor cancers in the United States, Germany, Japan, Greater China, and internationally. The company’s TTFields devices include Optune Gio and Optune Lua. It also has ongoing clinical trials investigating TTFields in brain metastases, gastric cancer, glioblastoma, liver cancer, non-small cell lung cancer, pancreatic cancer, and ovarian cancer. NovoCure Limited was incorporated in 2000 and is headquartered in Saint Helier, Jersey.
About Sonoma Pharmaceuticals
Sonoma Pharmaceuticals, Inc., develops and produces stabilized hypochlorous acid (HOCl) products for wound care, animal health care, eye care, oral care, and dermatological conditions in the United States, Latin America, Europe, Asia, and internationally. The company offers Regenacyn, a prescription scar gel; Pediacyn, a pediatric dermatology and wound care product for over-the-counter (OTC) use; Epicyn, an Antimicrobial Facial Cleanser; Levicyn, an HOCl based prescription and OTC product to use and relieve skin irritations, lacerations, abrasions, and burns; Celacyn, a scar management gel; and SebuDerm to manage and relieve the burning, itching, erythema, scaling, and pain associated with seborrhea and seborrheic dermatitis. It also provides Gramaderm for the treatment of topical mild to moderate acne; Microcyn, a HOCl-based topical line of products designed to stimulate expedited healing by targeting a wide range of pathogens; Ocucyn eyelid and eyelash cleanser; Microdacyn60 oral care solution for the treatment of mouth and throat infections; and Podiacyn, a foot care product. In addition, the company offers MicrocynAH, an HOCl-based solution designed to relieve common symptoms of hot spots, scratches, skin rashes post-surgical sites, and irritated animal skin for healing; MicrocynVS, a veterinarian-strength animal care product used in vet clinics and animal hospitals; Nanocyn, a hospital-grade disinfectant; Acuicyn, an antimicrobial prescription solution for the treatment of blepharitis and the daily hygiene of eyelids and lashes; MucoClyns for the use in emergencies and safe to use on mucous membranes, cuts, abrasions, burns, and body surfaces; Endocyn root canal irrigation solutions; and Sinudox for nasal irrigation. The company was formerly known as Oculus Innovative Sciences, Inc. and changed its name to Sonoma Pharmaceuticals, Inc. in December 2016. Sonoma Pharmaceuticals, Inc. was incorporated in 1999 and is based in Boulder, Colorado.
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