Critical Contrast: Zhongchao (NASDAQ:ZCMD) & Strata Skin Sciences (NASDAQ:SSKN)

Zhongchao (NASDAQ:ZCMD) and Strata Skin Sciences (NASDAQ:SSKN) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Zhongchao and Strata Skin Sciences, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zhongchao	1	0	0	0	1.00
Strata Skin Sciences	1	0	0	0	1.00

Profitability

This table compares Zhongchao and Strata Skin Sciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zhongchao	N/A	N/A	N/A
Strata Skin Sciences	-35.64%	-476.73%	-33.49%

Earnings & Valuation

This table compares Zhongchao and Strata Skin Sciences”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zhongchao	$11.38 million	0.01	-$6.31 million	N/A	N/A
Strata Skin Sciences	$30.98 million	0.02	-$10.09 million	($1.41)	-0.09

Zhongchao has higher earnings, but lower revenue than Strata Skin Sciences.

Risk and Volatility

Zhongchao has a beta of -0.13, suggesting that its stock price is 113% less volatile than the S&P 500. Comparatively, Strata Skin Sciences has a beta of -0.06, suggesting that its stock price is 106% less volatile than the S&P 500.

Insider and Institutional Ownership

1.7% of Zhongchao shares are held by institutional investors. Comparatively, 32.4% of Strata Skin Sciences shares are held by institutional investors. 28.6% of Zhongchao shares are held by company insiders. Comparatively, 40.9% of Strata Skin Sciences shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Strata Skin Sciences beats Zhongchao on 5 of the 9 factors compared between the two stocks.

About Zhongchao

Zhongchao Inc. provides healthcare information, education, and training services in the People's Republic of China. The company offers online and onsite health information services, healthcare education programs, and healthcare training products, including clinical practice training, open classes of popular medical topics, interactive case studies, academic conference and workshops, continuing education courses, and articles and short videos with educational healthcare content. It also provides customized medical courses and medical training services; and patient management services through online platform under the Zhongxun brand. The company operates through its mdmooc.org online platform under the MDMOOC brand; and Sunshine Health Forums, a Wechat subscription account and mobile app. It serves enterprises, non-for-profit organizations, and medical journals, as well as healthcare professionals, nurses, doctors, and other healthcare workers. The company was founded in 2012 and is headquartered in Shanghai, China.

About Strata Skin Sciences

STRATA Skin Sciences, Inc., a medical technology company, develops, commercializes, and markets products for the treatment of dermatologic conditions in the United States, Europe, the Middle East, Asia, Australia, South Africa, and Central and South America. The company operates in two segments, Dermatology Recurring Procedures and Dermatology Procedures Equipment. The company products include XTRAC and Pharos excimer lasers, and VTRAC lamp systems for the treatment systems that are used for the treatment of psoriasis, vitiligo, and other skin conditions. It also offers TheraClear Acne Therapy System for the treatment of mild to moderate inflammatory, comedonal, and pustular acne. The company was formerly known as MELA Sciences, Inc and changed its name to STRATA Skin Sciences, Inc. in January 2016. STRATA Skin Sciences, Inc. was incorporated in 1989 and is based in Horsham, Pennsylvania.