Syndax Pharmaceuticals (NASDAQ: SNDX) and Sonoma Pharmaceuticals (NASDAQ:SNOA) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Insider & Institutional Ownership

70.7% of Syndax Pharmaceuticals shares are owned by institutional investors. Comparatively, 9.8% of Sonoma Pharmaceuticals shares are owned by institutional investors. 24.1% of Syndax Pharmaceuticals shares are owned by company insiders. Comparatively, 13.3% of Sonoma Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Syndax Pharmaceuticals and Sonoma Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Syndax Pharmaceuticals $1.22 million 210.72 -$53.19 million ($2.84) -4.07
Sonoma Pharmaceuticals $14.02 million 1.74 -$12.55 million $1.99 2.84

Sonoma Pharmaceuticals has higher revenue and earnings than Syndax Pharmaceuticals. Syndax Pharmaceuticals 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 Syndax Pharmaceuticals and Sonoma Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Syndax Pharmaceuticals -4,294.59% -58.23% -45.65%
Sonoma Pharmaceuticals 54.36% -44.24% -36.04%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Syndax Pharmaceuticals and Sonoma Pharmaceuticals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Syndax Pharmaceuticals 0 0 10 0 3.00
Sonoma Pharmaceuticals 0 0 1 0 3.00

Syndax Pharmaceuticals presently has a consensus price target of $24.88, indicating a potential upside of 115.00%. Sonoma Pharmaceuticals has a consensus price target of $10.00, indicating a potential upside of 76.99%. Given Syndax Pharmaceuticals’ higher possible upside, research analysts clearly believe Syndax Pharmaceuticals is more favorable than Sonoma Pharmaceuticals.

Volatility and Risk

Syndax Pharmaceuticals has a beta of 4.75, suggesting that its share price is 375% more volatile than the S&P 500. Comparatively, Sonoma Pharmaceuticals has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

About Syndax Pharmaceuticals

Syndax Pharmaceuticals, Inc (Syndax) is a clinical stage biopharmaceutical company focused on developing a pipeline of combination therapies in multiple cancer indications. The Company‚Äôs product candidate, entinostat, which was granted Breakthrough Therapy designation by the FDA following positive results from its Phase IIb clinical trial, ENCORE 301, is being evaluated in a Phase III clinical trial for advanced hormone receptor positive breast cancer. It is developing entinostat, which has direct effects on both cancer cells and immune regulatory cells, and SNDX-6352, an anti-CSF-1R monoclonal antibody, to enhance the body’s immune response on tumors that have shown sensitivity to immunotherapy. Entinostat is being evaluated as a combination therapeutic in Phase Ib/II clinical trials with Merck & Co., Inc. for non-small cell lung cancer and melanoma, with Genentech, Inc. for TNBC, and with Pfizer Inc. and Merck KGaA, Darmstadt, Germany, for ovarian cancer.

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.

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