MediWound (NASDAQ: MDWD) and Sonoma Pharmaceuticals (NASDAQ:SNOA) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.

Risk and Volatility

MediWound has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500. Comparatively, Sonoma Pharmaceuticals has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.

Institutional & Insider Ownership

23.5% of MediWound shares are owned by institutional investors. Comparatively, 9.8% of Sonoma Pharmaceuticals shares are owned by institutional investors. 13.3% of Sonoma Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares MediWound and Sonoma Pharmaceuticals’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MediWound $2.17 million 56.66 -$16.18 million ($0.75) -7.47
Sonoma Pharmaceuticals $14.02 million 1.66 -$12.55 million $1.99 2.71

Sonoma Pharmaceuticals has higher revenue and earnings than MediWound. MediWound is trading at a lower price-to-earnings ratio than Sonoma Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for MediWound and Sonoma Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MediWound 0 0 4 0 3.00
Sonoma Pharmaceuticals 0 0 1 0 3.00

MediWound presently has a consensus target price of $10.33, suggesting a potential upside of 84.52%. Sonoma Pharmaceuticals has a consensus target price of $10.00, suggesting a potential upside of 85.19%. Given Sonoma Pharmaceuticals’ higher probable upside, analysts plainly believe Sonoma Pharmaceuticals is more favorable than MediWound.

Profitability

This table compares MediWound and Sonoma Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MediWound -752.78% -326.32% -48.65%
Sonoma Pharmaceuticals 54.36% -44.24% -36.04%

Summary

Sonoma Pharmaceuticals beats MediWound on 9 of the 12 factors compared between the two stocks.

About MediWound

MediWound Ltd. is a biopharmaceutical company. The Company focuses on developing, manufacturing and commercializing therapeutics products in the fields of severe burns, chronic and other hard-to-heal wounds, connective tissue disorders and other indications. The Company’s product, NexoBrid, is indicated for the removal of dead or damaged tissue, known as eschar, in adults with deep partial- and full-thickness thermal burns, also referred to as severe burns. The Company sells NexoBrid in Europe and Israel. NexoBrid is a topically-applied product that removes eschar in four hours without harming the surrounding healthy tissues. Its product, EscharEx, is a topical biological drug, which is being developed for debridement of chronic and other hard-to-heal wounds. NexoBrid and EscharEx are based on its proteolytic enzyme technology. The Company is also developing an injectable product based on its proteolytic enzyme technology for connective tissue pathologies and indications.

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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