Soleno Therapeutics (NASDAQ:SLNO) vs. Positron (OTCMKTS:POSC) Critical Analysis

Positron (OTCMKTS:POSC) and Soleno Therapeutics (NASDAQ:SLNO) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Volatility & Risk

Positron has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, Soleno Therapeutics has a beta of -1.47, indicating that its share price is 247% less volatile than the S&P 500.

Institutional & Insider Ownership

97.4% of Soleno Therapeutics shares are held by institutional investors. 17.2% of Positron shares are held by insiders. Comparatively, 12.3% of Soleno Therapeutics shares are held by 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.

Profitability

This table compares Positron and Soleno Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Positron	-300.00%	N/A	-89.57%
Soleno Therapeutics	N/A	-61.99%	-55.21%

Valuation & Earnings

This table compares Positron and Soleno Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Positron	$740,000.00	40.13	-$1.64 million	($0.08)	-13.59
Soleno Therapeutics	N/A	N/A	-$38.99 million	($3.32)	-13.61

Positron has higher revenue and earnings than Soleno Therapeutics. Soleno Therapeutics is trading at a lower price-to-earnings ratio than Positron, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Positron and Soleno Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Positron	0	0	0	0	0.00
Soleno Therapeutics	0	0	6	1	3.14

Soleno Therapeutics has a consensus target price of $74.83, indicating a potential upside of 65.63%. Given Soleno Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Soleno Therapeutics is more favorable than Positron.

About Positron

Positron Corporation, a nuclear medicine healthcare company, specializes in the business of cardiac positron emission tomography (PET) imaging in the United States. It offers attrius PET scanner, clinical and technical services, and financing solutions enables healthcare providers to accurately diagnose cardiac disease, improve patient outcomes, and practice cost effective medicines. Positron Corporation was incorporated in 1983 and is based in Niagara Falls, New York.

About Soleno Therapeutics

Soleno Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of novel therapeutics for the treatment of rare diseases. Its lead candidate is Diazoxide Choline Extended-Release tablets, a once-daily oral tablet, which is in Phase III clinical trials for the treatment of Prader-Willi Syndrome. The company was formerly known as Capnia, Inc. and changed its name to Soleno Therapeutics, Inc. in May 2017. Soleno Therapeutics, Inc. was incorporated in 1999 and is based in Redwood City, California.