Financial Analysis: Sonoma Pharmaceuticals (NASDAQ:SNOA) versus Lyra Therapeutics (OTCMKTS:LYRA)

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

Profitability

This table compares Sonoma Pharmaceuticals and Lyra Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sonoma Pharmaceuticals	-10.33%	-21.41%	-6.08%
Lyra Therapeutics	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Sonoma Pharmaceuticals and Lyra Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonoma Pharmaceuticals	1	0	0	0	1.00
Lyra Therapeutics	1	0	0	0	1.00

Institutional & Insider Ownership

1.9% of Sonoma Pharmaceuticals shares are held by institutional investors. Comparatively, 95.6% of Lyra Therapeutics shares are held by institutional investors. 1.0% of Sonoma Pharmaceuticals shares are held by company insiders. Comparatively, 3.3% of Lyra Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Sonoma Pharmaceuticals and Lyra Therapeutics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonoma Pharmaceuticals	$19.53 million	0.30	-$3.17 million	($1.22)	-1.00
Lyra Therapeutics	$400,000.00	0.84	-$28.92 million	($19.15)	-0.01

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

Volatility & Risk

Sonoma Pharmaceuticals has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, Lyra Therapeutics has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.

Summary

Lyra Therapeutics beats Sonoma Pharmaceuticals on 7 of the 11 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 Lyra Therapeutics

Lyra Therapeutics, Inc., a clinical-stage biotechnology company, focuses on the development and commercialization of novel integrated drug and delivery solutions for the localized treatment of patients with ear, nose, and throat diseases. It's XTreo technology platform is designed to deliver medicines directly to the affected tissue for sustained periods with a single administration. The company's product candidates include LYR-210, an anti-inflammatory implantable drug matrix for the treatment of chronic rhinosinusitis (CRS), which is in Phase III clinical trial; and LYR-220 for CRS patients with and without nasal polyps. It has a collaboration agreement with LianBio Inflammatory Limited to develop and commercialize LYR-210 in mainland China, Hong Kong, Taiwan, Macau, South Korea, Singapore, and Thailand. The company was formerly known as 480 Biomedical, Inc. and changed its name to Lyra Therapeutics, Inc. in July 2018. Lyra Therapeutics, Inc. was incorporated in 2005 and is headquartered in Watertown, Massachusetts.