Sonoma Pharmaceuticals (NASDAQ:SNOA) and Harmony Biosciences (NASDAQ:HRMY) Head to Head Review

Harmony Biosciences (NASDAQ:HRMY) and Sonoma Pharmaceuticals (NASDAQ:SNOA) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and target prices for Harmony Biosciences and Sonoma Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Harmony Biosciences	1	5	5	0	2.36
Sonoma Pharmaceuticals	1	0	0	0	1.00

Harmony Biosciences currently has a consensus price target of $47.11, suggesting a potential upside of 13.19%. Given Harmony Biosciences’ stronger consensus rating and higher possible upside, equities analysts clearly believe Harmony Biosciences is more favorable than Sonoma Pharmaceuticals.

Insider and Institutional Ownership

86.2% of Harmony Biosciences shares are owned by institutional investors. Comparatively, 2.0% of Sonoma Pharmaceuticals shares are owned by institutional investors. 11.0% of Harmony Biosciences shares are owned by company insiders. Comparatively, 1.0% of Sonoma Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Harmony Biosciences has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Sonoma Pharmaceuticals has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.

Earnings & Valuation

This table compares Harmony Biosciences and Sonoma Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Harmony Biosciences	$868.45 million	2.79	$158.69 million	$3.08	13.51
Sonoma Pharmaceuticals	$21.92 million	0.28	-$3.17 million	($1.22)	-1.07

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Harmony Biosciences	18.88%	20.06%	14.15%
Sonoma Pharmaceuticals	-10.33%	-21.41%	-6.08%

Summary

Harmony Biosciences beats Sonoma Pharmaceuticals on 13 of the 14 factors compared between the two stocks.

About Harmony Biosciences

Harmony Biosciences Holdings, Inc., a commercial-stage pharmaceutical company, focuses on developing and commercializing therapies for patients with rare and other neurological diseases in the United States. The company offers WAKIX (pitolisant), a molecule with a novel mechanism of action for the treatment of excessive daytime sleepiness in adult patients with narcolepsy. It also offers HBS-102, a melanin-concentrating hormone receptor 1 for MCH neurons. The company was formerly known as Harmony Biosciences II, Inc. and changed its name to Harmony Biosciences Holdings, Inc. in February 2020. Harmony Biosciences Holdings, Inc. was incorporated in 2017 and is headquartered in Plymouth Meeting, Pennsylvania.

About Sonoma Pharmaceuticals

Sonoma Pharmaceuticals, Inc., develops and produces stabilized hypochlorous acid (HOCl) products for wound care, animal health care, eye care, oral care, and dermatological conditions in the United States, Latin America, Europe, Asia, and internationally. The company offers Regenacyn, a prescription scar gel; Pediacyn, a pediatric dermatology and wound care product for over-the-counter (OTC) use; Epicyn, an Antimicrobial Facial Cleanser; Levicyn, an HOCl based prescription and OTC product to use and relieve skin irritations, lacerations, abrasions, and burns; Celacyn, a scar management gel; and SebuDerm to manage and relieve the burning, itching, erythema, scaling, and pain associated with seborrhea and seborrheic dermatitis. It also provides Gramaderm for the treatment of topical mild to moderate acne; Microcyn, a HOCl-based topical line of products designed to stimulate expedited healing by targeting a wide range of pathogens; Ocucyn eyelid and eyelash cleanser; Microdacyn60 oral care solution for the treatment of mouth and throat infections; and Podiacyn, a foot care product. In addition, the company offers MicrocynAH, an HOCl-based solution designed to relieve common symptoms of hot spots, scratches, skin rashes post-surgical sites, and irritated animal skin for healing; MicrocynVS, a veterinarian-strength animal care product used in vet clinics and animal hospitals; Nanocyn, a hospital-grade disinfectant; Acuicyn, an antimicrobial prescription solution for the treatment of blepharitis and the daily hygiene of eyelids and lashes; MucoClyns for the use in emergencies and safe to use on mucous membranes, cuts, abrasions, burns, and body surfaces; Endocyn root canal irrigation solutions; and Sinudox for nasal irrigation. The company was formerly known as Oculus Innovative Sciences, Inc. and changed its name to Sonoma Pharmaceuticals, Inc. in December 2016. Sonoma Pharmaceuticals, Inc. was incorporated in 1999 and is based in Boulder, Colorado.