Transition Therapeutics (NASDAQ: TTHI) and Sonoma Pharmaceuticals (NASDAQ:SNOA) are both biopharmaceuticals companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.
This is a breakdown of current ratings and target prices for Transition Therapeutics and Sonoma Pharmaceuticals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sonoma Pharmaceuticals has a consensus price target of $11.00, suggesting a potential upside of 147.19%. Given Sonoma Pharmaceuticals’ higher possible upside, analysts clearly believe Sonoma Pharmaceuticals is more favorable than Transition Therapeutics.
This table compares Transition Therapeutics and Sonoma Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
9.7% of Sonoma Pharmaceuticals shares are owned by institutional investors. 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.
Valuation & Earnings
This table compares Transition Therapeutics and Sonoma Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Sonoma Pharmaceuticals||$12.82 million||1.50||$9.27 million||$1.78||2.50|
Sonoma Pharmaceuticals has higher revenue and earnings than Transition Therapeutics. Transition Therapeutics is trading at a lower price-to-earnings ratio than Sonoma Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Sonoma Pharmaceuticals beats Transition Therapeutics on 9 of the 9 factors compared between the two stocks.
Transition Therapeutics Company Profile
Transition Therapeutics Inc. is a product-focused biopharmaceutical company. The Company’s principal business activity is the researching and developing of therapeutic agents. The Company is developing therapeutics for central nervous system (CNS) and metabolic disease indications. The Company’s technologies are focused on the treatment of agitation and aggression in Alzheimer’s disease and diabetes. The Company’s subsidiary, Transition Therapeutics Ireland Limited (Transition Ireland), is developing two drug candidates: neuropsychiatric candidate ELND005 and androgen deficiency candidate TT701. The Company’s subsidiary, Waratah Pharmaceuticals Inc. (Waratah), is developing diabetes drug candidate TT401. The Company’s other two entities provide development services in support of the clinical and non-clinical activities of Transition Ireland and Waratah.
Sonoma Pharmaceuticals Company Profile
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.
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