Head-To-Head Survey: Strata Skin Sciences (NASDAQ:SSKN) and Pulmonx (NASDAQ:LUNG)

Strata Skin Sciences (NASDAQ:SSKN) and Pulmonx (NASDAQ:LUNG) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.

Volatility & Risk

Strata Skin Sciences has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, Pulmonx has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.

Profitability

This table compares Strata Skin Sciences and Pulmonx’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%
Pulmonx	-59.67%	-82.79%	-38.20%

Valuation and Earnings

This table compares Strata Skin Sciences and Pulmonx”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Strata Skin Sciences	$30.98 million	0.02	-$10.09 million	($1.41)	-0.09
Pulmonx	$90.50 million	0.62	-$54.00 million	($1.33)	-1.00

Strata Skin Sciences has higher earnings, but lower revenue than Pulmonx. Pulmonx is trading at a lower price-to-earnings ratio than Strata Skin Sciences, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for Strata Skin Sciences and Pulmonx, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Strata Skin Sciences	1	0	0	0	1.00
Pulmonx	1	3	4	0	2.38

Pulmonx has a consensus target price of $5.38, indicating a potential upside of 304.40%. Given Pulmonx’s stronger consensus rating and higher possible upside, analysts plainly believe Pulmonx is more favorable than Strata Skin Sciences.

Insider & Institutional Ownership

32.4% of Strata Skin Sciences shares are held by institutional investors. Comparatively, 91.0% of Pulmonx shares are held by institutional investors. 40.9% of Strata Skin Sciences shares are held by insiders. Comparatively, 6.8% of Pulmonx shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Pulmonx beats Strata Skin Sciences on 8 of the 14 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 Pulmonx

Pulmonx Corporation, a commercial-stage medical technology company, provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases. The company offers Zephyr Endobronchial Valve, a solution for the treatment of patients with hyperinflation associated with severe emphysema; and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation. It also offers StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis service that offers information on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes for the treatment with Zephyr Valves. The company serves emphysema patients in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company was formerly known as Pulmonx and changed its name to Pulmonx Corporation in December 2013. Pulmonx Corporation was incorporated in 1995 and is headquartered in Redwood City, California.