Critical Review: Sonoma Pharmaceuticals (SNOA) versus Dynavax Technologies (DVAX)

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

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dynavax Technologies $330,000.00 3,467.16 -$95.15 million ($1.73) -10.72
Sonoma Pharmaceuticals $12.82 million 1.52 $9.27 million ($2.03) -2.02

Sonoma Pharmaceuticals has higher revenue and earnings than Dynavax Technologies. Dynavax Technologies 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 & Insider Ownership

71.2% of Dynavax Technologies shares are owned by institutional investors. Comparatively, 13.2% of Sonoma Pharmaceuticals shares are owned by institutional investors. 2.9% of Dynavax Technologies shares are owned by insiders. Comparatively, 13.3% of Sonoma Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Dynavax Technologies and Sonoma Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dynavax Technologies -29,099.08% -57.43% -52.76%
Sonoma Pharmaceuticals -70.46% -70.95% -57.86%

Analyst Ratings

This is a summary of current ratings and target prices for Dynavax Technologies and Sonoma Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dynavax Technologies 0 1 4 0 2.80
Sonoma Pharmaceuticals 0 2 0 0 2.00

Dynavax Technologies presently has a consensus price target of $27.40, indicating a potential upside of 47.71%. Sonoma Pharmaceuticals has a consensus price target of $8.50, indicating a potential upside of 107.32%. Given Sonoma Pharmaceuticals’ higher probable upside, analysts plainly believe Sonoma Pharmaceuticals is more favorable than Dynavax Technologies.

Risk & Volatility

Dynavax Technologies has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Sonoma Pharmaceuticals has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.

About Dynavax Technologies

Dynavax Technologies Corporation, a biopharmaceutical company, focuses on leveraging the power of the body's innate and adaptive immune responses through toll-like receptor (TLR) stimulation. The company's lead product candidates include HEPLISAV-B, a hepatitis B vaccine for prevention of infection caused by all known subtypes of the virus in adults age 18 years and older; SD-101, a cancer immunotherapy that is in Phase 2 clinical studies; and DV281, an investigational TLR9 agonist for the treatment of non-small cell lung cancer. Its product candidates also comprise AZD1419, which is in Phase II clinical trial for the treatment of asthma; DV230F that is in preclinical stage for the treatment of liver tumors; and DV1001, a TLR 7&8 agonist, which is in preclinical stage for oncology. It has collaboration and license agreements with AstraZeneca AB to develop AZD1419 for the treatment of asthma; and Merck & Co. to develop SD-101 for various immuno-oncology therapies. The company was formerly known as Double Helix Corporation and changed its name to Dynavax Technologies Corporation in September 1996. Dynavax Technologies Corporation was founded in 1996 and is headquartered in Berkeley, California.

About Sonoma Pharmaceuticals

Sonoma Pharmaceuticals, Inc., a specialty pharmaceutical company, develops and markets solutions for the treatment of dermatological conditions and advanced tissue care in the United States, Latin America, Europe, and internationally. The company offers Microcyn line of products that are based on electrically charged oxychlorine small molecules designed to target a range of pathogens, such as viruses, fungi, and spores, as well as bacteria, including antibiotic-resistant strains. Its products also include Celacyn, a prescription hypochlorous acid based scar management gel; Ceramax Skin Barrier Cream to manage dry itchy skin, minor skin irritations, rashes, and inflammation; Mondoxyne, a prescription oral tetracycline antibiotic for the treatment of various bacterial infections; Alevicyn, a prescription hypochlorous acid based atopic dermatitis product line to reduce itch and pain associated with various dermatoses; and SebuDerm, a prescription topical gel for the management of burning, itching, and scaling in seborrhea and seborrheic dermatitis. The company's Microcyn medical devices are used for cleaning, debridement, lubricating, moistening, and dressing of acute and chronic wounds in tissue care management. It also operates a microbiology contract testing laboratory that offers consulting and laboratory services to medical companies that design and manufacture biomedical devices and drugs. Sonoma Pharmaceuticals, Inc. sells its products directly to end users, as well as to distributors; and through in-house sales force and call center to hospitals, physicians, nurses, and other healthcare practitioners. 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 headquartered in Petaluma, California.

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