Head-To-Head Review: SI-BONE (NASDAQ:SIBN) and Sonoma Pharmaceuticals (NASDAQ:SNOA)

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

Risk and Volatility

Sonoma Pharmaceuticals has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, SI-BONE has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Valuation and Earnings

This table compares Sonoma Pharmaceuticals and SI-BONE”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonoma Pharmaceuticals	$13.97 million	0.28	-$4.84 million	($4.02)	-0.59
SI-BONE	$157.04 million	4.67	-$43.34 million	($0.92)	-18.99

Sonoma Pharmaceuticals has higher earnings, but lower revenue than SI-BONE. SI-BONE 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 and Insider Ownership

2.0% of Sonoma Pharmaceuticals shares are owned by institutional investors. Comparatively, 98.1% of SI-BONE shares are owned by institutional investors. 3.9% of Sonoma Pharmaceuticals shares are owned by company insiders. Comparatively, 3.9% of SI-BONE shares are owned by company 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for Sonoma Pharmaceuticals and SI-BONE, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonoma Pharmaceuticals	0	0	0	0	0.00
SI-BONE	0	0	6	0	3.00

SI-BONE has a consensus target price of $23.00, suggesting a potential upside of 31.65%. Given SI-BONE’s stronger consensus rating and higher probable upside, analysts plainly believe SI-BONE is more favorable than Sonoma Pharmaceuticals.

Profitability

This table compares Sonoma Pharmaceuticals and SI-BONE’s 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%
SI-BONE	-23.82%	-22.51%	-16.53%

Summary

SI-BONE beats Sonoma Pharmaceuticals on 10 of the 13 factors compared between the two stocks.

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 SI-BONE

SI-BONE, Inc., a medical device company, that operate to solve musculoskeletal disorders of the sacropelvic anatomy in the United States and internationally. It offers proprietary minimally invasive surgical implant system to address sacroiliac joint dysfunction and fusion, adult deformity and degeneration, and pelvic trauma; and implantable bone products. The company also provides iFuse-3D, a titanium implant that combines the triangular cross-section of the iFuse implant with the proprietary 3D-printed porous surface and fenestrated design; iFuse-TORQ, a set of 3D-printed threaded implants designed to treat pelvic trauma; and iFuse Bedrock Granite implant provides sacroiliac fusion and sacropelvic fixation as a foundational element for segmental spinal fusion. It markets its products primarily with a direct sales force, as well as through agents and resellers. SI-BONE, Inc. was incorporated in 2008 and is headquartered in Santa Clara, California.