Fractyl Health (NASDAQ:GUTS) and Sonoma Pharmaceuticals (NASDAQ:SNOA) Financial Analysis

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

Insider and Institutional Ownership

2.0% of Sonoma Pharmaceuticals shares are owned by institutional investors. 3.9% of Sonoma Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Sonoma Pharmaceuticals and Fractyl Health”s top-line 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	0.27	-$4.84 million	($4.02)	-0.58
Fractyl Health	$97,000.00	689.25	-$77.09 million	($12.19)	-0.11

Sonoma Pharmaceuticals has higher revenue and earnings than Fractyl Health. Sonoma Pharmaceuticals is trading at a lower price-to-earnings ratio than Fractyl Health, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Sonoma Pharmaceuticals and Fractyl Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonoma Pharmaceuticals	0	0	0	0	0.00
Fractyl Health	0	0	2	0	3.00

Fractyl Health has a consensus target price of $10.00, indicating a potential upside of 619.42%. Given Fractyl Health’s stronger consensus rating and higher possible upside, analysts clearly believe Fractyl Health is more favorable than Sonoma Pharmaceuticals.

Profitability

This table compares Sonoma Pharmaceuticals and Fractyl Health’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%
Fractyl Health	-64,849.48%	N/A	-57.21%

Summary

Sonoma Pharmaceuticals beats Fractyl Health on 7 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 Fractyl Health

Fractyl Health, Inc., a metabolic therapeutics company, develops therapies for the treatment of type 2 diabetes (T2D) and obesity. The company develops Revita DMR System (Revita), an outpatient procedural therapy designed to durably modify duodenal dysfunction, a pathologic consequence of a high fat and high sugar diet, which can initiate T2D and obesity in humans. It also develops Rejuva, a novel adeno-associated virus delivered pancreatic gene therapy platform that is designed to enable long-term remission of T2D and obesity by durably altering metabolic hormone function in the pancreatic islet cells of patients. Fractyl Health, Inc. was formerly known as Fractyl Laboratories Inc. and changed its name to Fractyl Health, Inc. on June 09, 2021. The company was incorporated in 2010 and is headquartered in Burlington, Massachusetts.