Critical Comparison: Sonoma Pharmaceuticals (SNOA) vs. Myovant Sciences (MYOV)

Sonoma Pharmaceuticals (NASDAQ: SNOA) and Myovant Sciences (NYSE:MYOV) are both small-cap healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Insider & Institutional Ownership

12.6% of Sonoma Pharmaceuticals shares are owned by institutional investors. Comparatively, 81.1% of Myovant Sciences shares are owned by institutional investors. 13.3% of Sonoma Pharmaceuticals shares are owned by insiders. Comparatively, 3.0% of Myovant Sciences shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Sonoma Pharmaceuticals and Myovant Sciences’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sonoma Pharmaceuticals $12.82 million 1.59 $9.27 million ($2.89) -1.49
Myovant Sciences N/A N/A -$83.44 million ($1.96) -7.62

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

Profitability

This table compares Sonoma Pharmaceuticals and Myovant Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sonoma Pharmaceuticals -70.46% -70.95% -57.86%
Myovant Sciences N/A -90.86% -74.94%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sonoma Pharmaceuticals and Myovant Sciences, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sonoma Pharmaceuticals 0 1 1 0 2.50
Myovant Sciences 0 0 4 0 3.00

Sonoma Pharmaceuticals presently has a consensus target price of $8.50, indicating a potential upside of 97.16%. Myovant Sciences has a consensus target price of $22.50, indicating a potential upside of 50.60%. Given Sonoma Pharmaceuticals’ higher probable upside, equities research analysts clearly believe Sonoma Pharmaceuticals is more favorable than Myovant Sciences.

Volatility & Risk

Sonoma Pharmaceuticals has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Myovant Sciences has a beta of -0.06, suggesting that its share price is 106% less volatile than the S&P 500.

Summary

Sonoma Pharmaceuticals beats Myovant Sciences on 8 of the 13 factors compared between the two stocks.

About Sonoma Pharmaceuticals

Sonoma Pharmaceuticals, Inc., formerly Oculus Innovative Sciences, Inc., is a specialty pharmaceutical company that develops and markets solutions for the treatment of dermatological conditions and advanced tissue care. The Company’s product portfolio consists of dermatology and advanced tissue care products based upon its technologies, such as Microcyn and Lipogrid. Microcyn is a small-molecule oxychlorine compound with antimicrobial and anti-inflammatory properties that, in clinical settings, reduces itch and pain associated with dermal irritations and wounds, such as sores, injuries and ulcers of dermal tissue. Lipogrid Technology contains selected lipids and a lipid precursor designed to penetrate the bilayers of the skin by blending with the natural lipid building blocks. Its products serve over five million patients across the globe by reducing infections, itch, pain, scarring and inflammatory responses. Its products are sold throughout the United States and internationally.

About Myovant Sciences

Myovant Sciences Ltd. is a clinical-stage biopharmaceutical company focused on developing and commercializing therapies for women’s health diseases and other endocrine-related disorders. Its main product candidate is Relugolix. Relugolix is an oral, once-daily, small molecule that acts as a gonadotropin-releasing hormone (GnRH) receptor antagonist that binds to and inhibits receptors in the anterior pituitary gland. Inhibition of GnRH receptors decreases the release of the gonadotropins, luteinizing hormone, or LH, and follicle-stimulating hormone, or FSH, thereby decreasing the down-stream production of estrogen and progesterone by the ovaries in women and testosterone by the testes in men. It is advancing relugolix for the treatment of heavy menstrual bleeding associated with uterine fibroids, endometriosis-associated pain and prostate cancer. It intends to develop its second product candidate, RVT-602, for the treatment of female infertility as part of assisted reproduction.

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