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

Profitability

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

Net Margins Return on Equity Return on Assets
Sonoma Pharmaceuticals 54.36% -44.24% -36.04%
Catalyst Biosciences -3,127.92% -92.61% -46.69%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Sonoma Pharmaceuticals and Catalyst Biosciences, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sonoma Pharmaceuticals 0 0 1 0 3.00
Catalyst Biosciences 0 0 3 0 3.00

Sonoma Pharmaceuticals currently has a consensus price target of $10.00, indicating a potential upside of 99.20%. Catalyst Biosciences has a consensus price target of $24.50, indicating a potential upside of 353.70%. Given Catalyst Biosciences’ higher probable upside, analysts clearly believe Catalyst Biosciences is more favorable than Sonoma Pharmaceuticals.

Valuation & Earnings

This table compares Sonoma Pharmaceuticals and Catalyst Biosciences’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sonoma Pharmaceuticals $14.02 million 1.54 -$12.55 million $1.99 2.52
Catalyst Biosciences $561,999.00 41.41 -$19.79 million ($17.78) -0.30

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

Institutional & Insider Ownership

9.8% of Sonoma Pharmaceuticals shares are held by institutional investors. Comparatively, 29.2% of Catalyst Biosciences shares are held by institutional investors. 13.3% of Sonoma Pharmaceuticals shares are held by company insiders. Comparatively, 5.0% of Catalyst Biosciences shares are held 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.

Risk & Volatility

Sonoma Pharmaceuticals has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Catalyst Biosciences has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500.

Summary

Sonoma Pharmaceuticals beats Catalyst Biosciences on 7 of the 12 factors compared between the two stocks.

Sonoma Pharmaceuticals Company Profile

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.

Catalyst Biosciences Company Profile

Catalyst Biosciences, Inc., formerly Targacept, Inc., is a clinical-stage biopharmaceutical company. The Company is focused on creating and developing medicines to address serious medical conditions. The Company focuses its product development efforts in the fields of hemostasis, including the treatment of hemophilia and surgical bleeding, and inflammation, including prevention of delayed graft function (DGF) in renal transplants and the treatment of dry age-related macular degeneration (dry AMD), a condition that can cause visual impairment or blindness. The Company’s advanced program is a coagulation Factor VIIa variant, CB 813d, that has completed a Phase I clinical trial in severe hemophilia A and B patients. In addition to its lead Factor VIIa program, it has approximately two other coagulation factors, a Factor IX variant, CB 2679d/ISU 304, that is in advanced preclinical development, and a Factor Xa variant that has reached the advanced lead preclinical-stage of development.

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