Head to Head Contrast: Sonoma Pharmaceuticals (NASDAQ:SNOA) and InspireMD (NYSE:NSPR)

Sonoma Pharmaceuticals (NASDAQ:SNOA) and InspireMD (NYSE:NSPR) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Profitability

This table compares Sonoma Pharmaceuticals and InspireMD’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sonoma Pharmaceuticals	-26.82%	-68.98%	-26.39%
InspireMD	-413.96%	-69.42%	-57.68%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonoma Pharmaceuticals	0	0	0	0	0.00
InspireMD	0	0	2	0	3.00

InspireMD has a consensus target price of $4.50, indicating a potential upside of 77.17%. Given InspireMD’s stronger consensus rating and higher possible upside, analysts plainly believe InspireMD is more favorable than Sonoma Pharmaceuticals.

Earnings & Valuation

This table compares Sonoma Pharmaceuticals and InspireMD”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonoma Pharmaceuticals	$13.97 million	0.39	-$4.84 million	($4.02)	-0.85
InspireMD	$7.03 million	11.07	-$19.92 million	($0.79)	-3.22

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

Institutional and Insider Ownership

2.0% of Sonoma Pharmaceuticals shares are held by institutional investors. Comparatively, 44.8% of InspireMD shares are held by institutional investors. 3.9% of Sonoma Pharmaceuticals shares are held by company insiders. Comparatively, 34.1% of InspireMD shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Sonoma Pharmaceuticals has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500. Comparatively, InspireMD has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

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 InspireMD

InspireMD, Inc., a medical device company, focuses on the development and commercialization of MicroNet stent platform technology for the treatment of vascular and coronary diseases in Europe, Latin America, the Middle East, and Asia Pacific. The company offers CGuard carotid embolic prevention system (EPS) for use in carotid artery applications; CGuard Prime Stent System, a mesh-covered self-expanding carotid stent; and SwitchGuard NPS, a non-invasive transcarotid artery revascularization device; as well as treating acute stroke with tandem lesions. InspireMD, Inc. has a strategic agreement with Jacobs Institute to execute an early feasibility study of CGuard Prime for the treatment of acute stroke patients with tandem lesions. The company sells its products through local distribution partners. InspireMD, Inc. was founded in 2005 and is headquartered in Tel Aviv-Yafo, Israel.