Soleno Therapeutics (NASDAQ: SLNO) and Medtronic (NYSE:MDT) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Institutional & Insider Ownership

45.8% of Soleno Therapeutics shares are owned by institutional investors. Comparatively, 80.3% of Medtronic shares are owned by institutional investors. 43.3% of Soleno Therapeutics shares are owned by company insiders. Comparatively, 0.3% of Medtronic shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Soleno Therapeutics has a beta of 5.12, suggesting that its share price is 412% more volatile than the S&P 500. Comparatively, Medtronic has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Soleno Therapeutics $1.45 million 28.50 -$15.66 million N/A N/A
Medtronic $29.95 billion 3.92 $3.10 billion $4.77 18.15

Medtronic has higher revenue and earnings than Soleno Therapeutics.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Soleno Therapeutics and Medtronic, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Soleno Therapeutics 0 0 2 0 3.00
Medtronic 0 6 16 0 2.73

Soleno Therapeutics presently has a consensus target price of $4.00, suggesting a potential upside of 91.39%. Medtronic has a consensus target price of $92.82, suggesting a potential upside of 7.21%. Given Soleno Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Soleno Therapeutics is more favorable than Medtronic.

Dividends

Medtronic pays an annual dividend of $1.84 per share and has a dividend yield of 2.1%. Soleno Therapeutics does not pay a dividend. Medtronic pays out 38.6% of its earnings in the form of a dividend. Medtronic has increased its dividend for 40 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Soleno Therapeutics N/A -54.36% -40.91%
Medtronic 10.36% 12.84% 6.84%

Summary

Medtronic beats Soleno Therapeutics on 9 of the 15 factors compared between the two stocks.

Soleno Therapeutics Company Profile

Soleno Therapeutics, Inc. focuses on the development and commercialization of novel therapeutics for the treatment of rare diseases. The company's lead candidate, diazoxide choline controlled-release (DCCR), a once-daily oral tablet for the treatment of Prader-Willi Syndrome (PWS), is entering into Phase II/III clinical development. It also markets medical devices, including the CoSense End-Tidal Carbon Monoxide (ETCO) monitor, which measures ETCO and is used by hospitals to detect hemolysis in newborns; and NeoPip T-piece resuscitator and related consumables, which deliver consistent pre-set inspiratory pressure and positive end-expiratory pressures, as well as temperature probes, scales, surgical tables, and patient surfaces. In addition, the company offers Serenz, a handheld device that delivers non-inhaled carbon dioxide topically to the nasal mucosa. The company was formerly known as Capnia, Inc. and changed its name to Soleno Therapeutics, Inc. May 2017. Soleno Therapeutics, Inc. was founded in 1999 and is headquartered in Redwood City, California.

Medtronic Company Profile

Medtronic plc manufactures and sells device-based medical therapies to hospitals, physicians, clinicians, and patients worldwide. The company's Cardiac and Vascular Group segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; diagnostics and monitoring devices; mechanical circulatory support, TYRX, and AF products; and remote monitoring and patient-centered software. It also provides transcatheter heart valves, percutaneous coronary intervention stents, surgical valve replacement and repair products, endovascular stent grafts, peripheral vascular products, and products to treat superficial and deep venous diseases. Its Minimally Invasive Therapies Group segment offers surgical care, wound closure, electrosurgical, hernia mechanical device, mesh implant, ablation, interventional lung, ventilator, capnography, airway, sensor, monitor, compression, dialysis, enteral feeding, wound care, and medical surgical products; stapling, vessel sealing, fixation, and hardware instruments; and gastrointestinal, temperature management, inhalation therapy, and renal care solutions. The company's Restorative Therapies Group segment offers products for spine, bone graft substitutes, biologic products, trauma, implantable neurostimulation therapies, and drug delivery systems for the treatment of chronic pain, movement disorders, obsessive-compulsive disorder, overactive bladder, urinary retention, fecal incontinence, and gastroparesis, as well as products to treat conditions of the ear, nose, and throat; and systems that incorporate energy surgical instruments. It also provides image-guided surgery and intra-operative imaging systems; and therapies for vasculature in and around the brain. The company's Diabetes Group segment offers insulin pumps and consumables, continuous glucose monitoring systems, and Web-based therapy management software. The company was founded in 1949 and is headquartered in Dublin, Ireland.

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