Critical Review: Item 9 Labs (OTC:INLB) and Sonendo (NYSE:SONX)

Item 9 Labs (OTC:INLBGet Rating) and Sonendo (NYSE:SONXGet Rating) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations for Item 9 Labs and Sonendo, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Item 9 Labs 0 0 1 0 3.00
Sonendo 0 1 4 0 2.80

Item 9 Labs currently has a consensus price target of $4.00, suggesting a potential upside of 236.13%. Sonendo has a consensus price target of $11.98, suggesting a potential upside of 320.35%. Given Sonendo’s higher possible upside, analysts clearly believe Sonendo is more favorable than Item 9 Labs.

Earnings and Valuation

This table compares Item 9 Labs and Sonendo’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Item 9 Labs $21.94 million 5.13 -$10.91 million ($0.16) -7.44
Sonendo $33.20 million 2.27 -$48.50 million N/A N/A

Item 9 Labs has higher earnings, but lower revenue than Sonendo.

Insider and Institutional Ownership

18.3% of Sonendo shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Item 9 Labs and Sonendo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Item 9 Labs -52.53% -11.86% -9.82%
Sonendo N/A N/A N/A

Summary

Sonendo beats Item 9 Labs on 7 of the 10 factors compared between the two stocks.

About Item 9 Labs (Get Rating)

Item 9 Labs Corp. focused on development, manufacturing and distribution of nasal breathing and intra-nasal delivery devices. The Company’s Air Allergy is a discreet personal filter which protects from irritating airborne allergens. Air Sleep/Snore provides drug-free relief for congestion and snoring caused by nasal breathing difficulties. Item 9 Labs Corp., formerly known as Airware Labs Corp, is headquartered in Southern Arizona, United States.

About Sonendo (Get Rating)

Sonendo, Inc., a commercial-stage medical technology company, develops, manufactures, and commercializes devices for root canal therapy in the United States and Canada. It provides GentleWave, a tooth decay treatment device for cleaning and disinfecting the microscopic spaces within teeth without the need to remove tooth structure. The company also offers SoundSeal, a material used to build and create a sealing platform on the top of the crown; and Sonendo-branded liquid solution of ethylenediaminetetraacetic acid that is used to help debride and disinfect the root canal system. In addition, it provides The Digital Office, a practice management software that integrates digital office for dental practitioners. The company was formerly known as Dentatek Corporation and changed its name to Sonendo, Inc. in March 2011. Sonendo, Inc. was incorporated in 2006 and is headquartered in Laguna Hills, California.

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