Strata Skin Sciences (NASDAQ:SSKN – Get Free Report) and Outset Medical (NASDAQ:OM – Get Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.
Institutional and Insider Ownership
32.4% of Strata Skin Sciences shares are held by institutional investors. 40.9% of Strata Skin Sciences shares are held by insiders. Comparatively, 2.4% of Outset Medical shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Strata Skin Sciences and Outset Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Strata Skin Sciences | -35.64% | -476.73% | -33.49% |
| Outset Medical | -73.12% | -71.37% | -30.11% |
Risk & Volatility
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Strata Skin Sciences and Outset Medical, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Strata Skin Sciences | 1 | 0 | 1 | 0 | 2.00 |
| Outset Medical | 1 | 1 | 2 | 1 | 2.60 |
Strata Skin Sciences presently has a consensus target price of $6.00, suggesting a potential upside of 337.96%. Outset Medical has a consensus target price of $12.67, suggesting a potential upside of 257.82%. Given Strata Skin Sciences’ higher probable upside, research analysts clearly believe Strata Skin Sciences is more favorable than Outset Medical.
Earnings and Valuation
This table compares Strata Skin Sciences and Outset Medical”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Strata Skin Sciences | $33.56 million | 0.24 | -$10.09 million | ($2.67) | -0.51 |
| Outset Medical | $113.69 million | 0.57 | -$127.98 million | ($13.05) | -0.27 |
Strata Skin Sciences has higher earnings, but lower revenue than Outset Medical. Strata Skin Sciences is trading at a lower price-to-earnings ratio than Outset Medical, indicating that it is currently the more affordable of the two stocks.
Summary
Outset Medical beats Strata Skin Sciences on 9 of the 15 factors compared between the two stocks.
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.
About Outset Medical
Outset Medical, Inc., a medical technology company, engages in the development of a hemodialysis system for hemodialysis in the United States. The company offers Tablo Hemodialysis System, a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings; and manufactures, supports, and distributes for Tablo console, Tablo cartridge, and other consumables. It also provides Tablo Data Ecosystem, including TabloHub, a customer-facing portal; MyTablo, a patient-facing portal; and TabloDash, an internal data analytics platform. The company was formerly known as Home Dialysis Plus, Ltd. and changed its name to Outset Medical, Inc. in January 2015. Outset Medical, Inc. was incorporated in 2003 and is headquartered in San Jose, California.
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