Sonoma Pharmaceuticals (NASDAQ: SNOA) and Avid Bioservices (NASDAQ:CDMO) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.
Earnings & Valuation
This table compares Sonoma Pharmaceuticals and Avid Bioservices’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sonoma Pharmaceuticals||$12.82 million||1.49||$9.27 million||($2.79)||-1.44|
|Avid Bioservices||$57.63 million||2.24||-$28.15 million||($0.81)||-2.86|
This is a breakdown of recent ratings and target prices for Sonoma Pharmaceuticals and Avid Bioservices, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sonoma Pharmaceuticals currently has a consensus target price of $8.50, indicating a potential upside of 111.44%. Avid Bioservices has a consensus target price of $7.00, indicating a potential upside of 201.72%. Given Avid Bioservices’ stronger consensus rating and higher probable upside, analysts clearly believe Avid Bioservices is more favorable than Sonoma Pharmaceuticals.
This table compares Sonoma Pharmaceuticals and Avid Bioservices’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Sonoma Pharmaceuticals has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Avid Bioservices has a beta of 2.43, suggesting that its share price is 143% more volatile than the S&P 500.
Institutional and Insider Ownership
13.2% of Sonoma Pharmaceuticals shares are held by institutional investors. Comparatively, 14.7% of Avid Bioservices shares are held by institutional investors. 13.3% of Sonoma Pharmaceuticals shares are held by company insiders. Comparatively, 2.5% of Avid Bioservices shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Avid Bioservices beats Sonoma Pharmaceuticals on 11 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 Avid Bioservices
Avid Bioservices, Inc., formerly Peregrine Pharmaceuticals, Inc., is a biopharmaceutical company. The Company is engaged in providing contract manufacturing services for third party customers on a fee-for-service basis while also supporting its internal drug development efforts. The Company delivers pharmaceutical products through its contract manufacturing business and through licensing its development-stage immunotherapy products. The company provides a comprehensive range of process development, high quality cGMP clinical and commercial manufacturing services for the biotechnology and biopharmaceutical industries. Its services include cGMP clinical and commercial product manufacturing, purification, bulk packaging, stability testing and regulatory strategy, submission and support. The Company also provides a variety of process development activities, including cell line development and optimization.
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