Sonoma Pharmaceuticals (NASDAQ:SNOA – Get Free Report) and Ocular Therapeutix (NASDAQ:OCUL – Get Free Report) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.
Profitability
This table compares Sonoma Pharmaceuticals and Ocular Therapeutix’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sonoma Pharmaceuticals | -20.57% | -45.46% | -13.95% |
| Ocular Therapeutix | -447.57% | -86.33% | -57.29% |
Earnings & Valuation
This table compares Sonoma Pharmaceuticals and Ocular Therapeutix”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sonoma Pharmaceuticals | $14.29 million | 0.44 | -$3.46 million | ($2.19) | -1.68 |
| Ocular Therapeutix | $63.72 million | 39.52 | -$193.51 million | ($1.44) | -8.21 |
Sonoma Pharmaceuticals has higher earnings, but lower revenue than Ocular Therapeutix. Ocular Therapeutix is trading at a lower price-to-earnings ratio than Sonoma Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings for Sonoma Pharmaceuticals and Ocular Therapeutix, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sonoma Pharmaceuticals | 1 | 0 | 0 | 0 | 1.00 |
| Ocular Therapeutix | 1 | 1 | 12 | 0 | 2.79 |
Ocular Therapeutix has a consensus price target of $22.56, suggesting a potential upside of 90.83%. Given Ocular Therapeutix’s stronger consensus rating and higher possible upside, analysts clearly believe Ocular Therapeutix is more favorable than Sonoma Pharmaceuticals.
Institutional and Insider Ownership
2.0% of Sonoma Pharmaceuticals shares are owned by institutional investors. Comparatively, 59.2% of Ocular Therapeutix shares are owned by institutional investors. 24.6% of Sonoma Pharmaceuticals shares are owned by company insiders. Comparatively, 2.3% of Ocular Therapeutix shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Sonoma Pharmaceuticals has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Ocular Therapeutix has a beta of 0.93, indicating that its share price is 7% 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 Ocular Therapeutix
Ocular Therapeutix, Inc., a biopharmaceutical company, focuses on the formulation, development, and commercialization of therapies for diseases and conditions of the eye using its bioresorbable hydrogel-based formulation technology in the United States. The company markets DEXTENZA, a dexamethasone ophthalmic insert to treat post-surgical ocular inflammation and pain following ophthalmic surgery, as well as allergic conjunctivitis. It is developing AXPAXLI, an axitinib intravitreal implant that is in phase 3 trials for the treatment of wet age-related macular degeneration and other retinal diseases; PAXTRAVA, a travoprost intracameral implant, which is in phase 2 clinical trials for the treatment of open-angle glaucoma or ocular hypertension; OTX-CSI, a cyclosporine intracanalicular insert that has completed phase 2 clinical trials for the treatment of dry eye disease; and OTX-DED, a dexamethasone intracanalicular insert, which is in phase 2 clinical trials for the short-term treatment of the signs and symptoms of dry eye disease. In addition, the company offers modulator for intermediate and late dry age-related macular degeneration; and gene delivery for inherited retinal degenerations and protein biofactory indications. The company has a strategic collaboration with Regeneron Pharmaceuticals, Inc. (Regeneron) for the development and commercialization of products using the company’s sustained-release hydrogel in combination with Regeneron’s large molecule VEGF-targeting compounds for the treatment of retinal diseases; and AffaMed Therapeutics Limited for the development and commercialization of DEXTENZA and OTX-TIC. Ocular Therapeutix, Inc. was incorporated in 2006 and is headquartered in Bedford, Massachusetts.
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