Sientra (NASDAQ: SIEN) and Alliqua BioMedical (NASDAQ:ALQA) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for Sientra and Alliqua BioMedical, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sientra 0 1 4 0 2.80
Alliqua BioMedical 0 0 3 0 3.00

Sientra currently has a consensus price target of $13.75, suggesting a potential upside of 4.44%. Alliqua BioMedical has a consensus price target of $14.17, suggesting a potential upside of 498.10%. Given Alliqua BioMedical’s stronger consensus rating and higher probable upside, analysts clearly believe Alliqua BioMedical is more favorable than Sientra.

Profitability

This table compares Sientra and Alliqua BioMedical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sientra -169.77% -62.14% -43.69%
Alliqua BioMedical -185.30% -107.24% -65.83%

Institutional & Insider Ownership

77.6% of Sientra shares are held by institutional investors. 28.1% of Sientra shares are held by insiders. Comparatively, 15.8% of Alliqua BioMedical shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Sientra has a beta of -1.45, suggesting that its share price is 245% less volatile than the S&P 500. Comparatively, Alliqua BioMedical has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Valuation and Earnings

This table compares Sientra and Alliqua BioMedical’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Sientra $20.73 million 12.32 -$40.16 million ($2.85) -4.62
Alliqua BioMedical $18.24 million 0.65 -$28.24 million ($12.30) -0.19

Alliqua BioMedical has higher revenue, but lower earnings than Sientra. Sientra is trading at a lower price-to-earnings ratio than Alliqua BioMedical, indicating that it is currently the more affordable of the two stocks.

Summary

Sientra beats Alliqua BioMedical on 9 of the 13 factors compared between the two stocks.

About Sientra

Sientra, Inc. is a medical aesthetics company. The Company’s primary products are silicone gel breast implants for use in breast augmentation and breast reconstruction procedures, which it offers in over 190 variations of shapes, sizes and textures. The Company sells its breast implants and breast tissue expanders, or breast products to plastic surgeons. Its breast implants are primarily used in elective procedures, which are generally performed on a cash-pay basis. TRUE Texture provides texturing on the implant shell that is designed to reduce the incidence of malposition, rotation and capsular contracture. The Company also offers breast tissue expanders and a range of other aesthetic and specialty products. The Company offers a range of HSC+ breast implants, including anatomically shaped textured, round textured and round smooth. The Company also offers miraDry system, the device to reduce underarm sweat, odor and permanently reduce hair of all colors.

About Alliqua BioMedical

Alliqua BioMedical, Inc. is a provider of advanced wound care solutions. The Company’s businesses include advanced wound care and contract manufacturing. The Company operates through its subsidiaries, such as AquaMed Technologies, Inc. and Choice Therapeutics, Inc. The Company is engaged in developing a suite of advanced wound care solutions that will enable surgeons, clinicians and wound care practitioners to address the challenges in chronic and acute wounds. The Company utilizes hydrogel technology through which hydrogels are manufactured by introducing a hydrophilic polymer into water to create a feed mix. The Company’s commercial wound care portfolio consists of over four product categories, such as Human Biologics; Antimicrobial Protection; Exudate Management and Contract Manufacturing. Human Biologics include BIOVANCE and Extracellular Matrix (ECM). Under Antimicrobial Protection, the Company offers SilverSeal.

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