Comparing Sonoma Pharmaceuticals (NASDAQ:SNOA) and Femasys (NASDAQ:FEMY)

Sonoma Pharmaceuticals (NASDAQ:SNOA) and Femasys (NASDAQ:FEMY) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Earnings and Valuation

This table compares Sonoma Pharmaceuticals and Femasys”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonoma Pharmaceuticals	$12.73 million	0.34	-$4.84 million	($4.02)	-0.66
Femasys	$1.07 million	25.25	-$14.25 million	($0.81)	-1.46

Sonoma Pharmaceuticals has higher revenue and earnings than Femasys. Femasys 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 Femasys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sonoma Pharmaceuticals	-26.82%	-68.98%	-26.39%
Femasys	-1,435.77%	-141.49%	-82.30%

Volatility & Risk

Sonoma Pharmaceuticals has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Femasys has a beta of -2.81, suggesting that its share price is 381% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonoma Pharmaceuticals	0	0	0	0	0.00
Femasys	0	0	3	0	3.00

Femasys has a consensus price target of $10.00, indicating a potential upside of 747.46%. Given Femasys’ stronger consensus rating and higher probable upside, analysts plainly believe Femasys is more favorable than Sonoma Pharmaceuticals.

Insider and Institutional Ownership

2.0% of Sonoma Pharmaceuticals shares are owned by institutional investors. Comparatively, 65.3% of Femasys shares are owned by institutional investors. 3.9% of Sonoma Pharmaceuticals shares are owned by insiders. Comparatively, 12.3% of Femasys shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

About Sonoma Pharmaceuticals

Sonoma Pharmaceuticals, Inc., develops and produces stabilized hypochlorous acid (HOCl) products for wound care, animal health care, eye care, oral care, and dermatological conditions in the United States, Latin America, Europe, Asia, and internationally. The company offers Regenacyn, a prescription scar gel; Pediacyn, a pediatric dermatology and wound care product for over-the-counter (OTC) use; Epicyn, an Antimicrobial Facial Cleanser; Levicyn, an HOCl based prescription and OTC product to use and relieve skin irritations, lacerations, abrasions, and burns; Celacyn, a scar management gel; and SebuDerm to manage and relieve the burning, itching, erythema, scaling, and pain associated with seborrhea and seborrheic dermatitis. It also provides Gramaderm for the treatment of topical mild to moderate acne; Microcyn, a HOCl-based topical line of products designed to stimulate expedited healing by targeting a wide range of pathogens; Ocucyn eyelid and eyelash cleanser; Microdacyn60 oral care solution for the treatment of mouth and throat infections; and Podiacyn, a foot care product. In addition, the company offers MicrocynAH, an HOCl-based solution designed to relieve common symptoms of hot spots, scratches, skin rashes post-surgical sites, and irritated animal skin for healing; MicrocynVS, a veterinarian-strength animal care product used in vet clinics and animal hospitals; Nanocyn, a hospital-grade disinfectant; Acuicyn, an antimicrobial prescription solution for the treatment of blepharitis and the daily hygiene of eyelids and lashes; MucoClyns for the use in emergencies and safe to use on mucous membranes, cuts, abrasions, burns, and body surfaces; Endocyn root canal irrigation solutions; and Sinudox for nasal irrigation. 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 based in Boulder, Colorado.

About Femasys

Femasys Inc., a biomedical company, develops therapeutic and diagnostic solutions to address unmet women healthcare needs worldwide. The company provides FemVue saline-air device, a contrast-generating product in the United States, Canada, Japan, and Hong Kong; FemCath, a cornual balloon catheter, a single intrauterine directional delivery product that allows for selective evaluation of an individual fallopian tube; and FemCerv, a biopsy device for endocervical curettage, which can be used to sample cervical cells and tissue circumferentially with sample containment within the device to minimize contamination. It also develops permanent birth control solutions, such as FemBloc and FemChec; FemaSeed, an artificial insemination solution; and FemEMB, a product candidate for endometrial sampling in support of uterine cancer detection testing. The company offers its products to reproductive endocrinologists for infertility products, obstetrics-gynecological physicians, related healthcare professionals, and women's healthcare provider organizations. Femasys Inc. was incorporated in 2004 and is headquartered in Suwanee, Georgia.