Sonoma Pharmaceuticals (NASDAQ:SNOA – Get Free Report) and Lifecore Biomedical (NASDAQ:LFCR – Get Free Report) are both small-cap healthcare companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.
Risk and Volatility
Sonoma Pharmaceuticals has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Lifecore Biomedical has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.
Institutional & Insider Ownership
1.9% of Sonoma Pharmaceuticals shares are held by institutional investors. Comparatively, 83.4% of Lifecore Biomedical shares are held by institutional investors. 1.0% of Sonoma Pharmaceuticals shares are held by company insiders. Comparatively, 32.7% of Lifecore Biomedical shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Sonoma Pharmaceuticals and Lifecore Biomedical, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sonoma Pharmaceuticals | 1 | 0 | 0 | 0 | 1.00 |
| Lifecore Biomedical | 1 | 4 | 0 | 0 | 1.80 |
Lifecore Biomedical has a consensus price target of $6.50, suggesting a potential upside of 1.48%. Given Lifecore Biomedical’s stronger consensus rating and higher probable upside, analysts clearly believe Lifecore Biomedical is more favorable than Sonoma Pharmaceuticals.
Profitability
This table compares Sonoma Pharmaceuticals and Lifecore Biomedical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sonoma Pharmaceuticals | -10.33% | -21.41% | -6.08% |
| Lifecore Biomedical | -29.93% | N/A | -16.16% |
Earnings and Valuation
This table compares Sonoma Pharmaceuticals and Lifecore Biomedical”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sonoma Pharmaceuticals | $19.53 million | 0.28 | -$3.17 million | ($1.22) | -0.92 |
| Lifecore Biomedical | $128.87 million | 1.88 | -$40.50 million | ($1.07) | -5.99 |
Sonoma Pharmaceuticals has higher earnings, but lower revenue than Lifecore Biomedical. Lifecore Biomedical is trading at a lower price-to-earnings ratio than Sonoma Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Summary
Lifecore Biomedical beats Sonoma Pharmaceuticals on 8 of the 13 factors compared between the two stocks.
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.
About Lifecore Biomedical
Lifecore Biomedical, Inc., together with its subsidiaries, operates as an integrated contract development and manufacturing organization in the United States and internationally. The company engages in the manufacturing of pharmaceutical-grade sodium hyaluronate (HA) in bulk form, as well as formulated and filled syringes and vials for injectable products used in treating a range of medical conditions and procedures. It also provides services, such as technology development, material component changes, analytical method development, formulation development, pilot studies, stability studies, process validation, and production of materials for clinical studies to its partners for HA-based and non-HA based aseptically formulated and filled products. The company was formerly known as Landec Corporation and changed its name to Lifecore Biomedical, Inc. in November 2022. Lifecore Biomedical, Inc. was founded in 1965 and is headquartered in Chaska, Minnesota.
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