Inotiv (NASDAQ:NOTV – Get Free Report) and Sonoma Pharmaceuticals (NASDAQ:SNOA – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.
Earnings and Valuation
This table compares Inotiv and Sonoma Pharmaceuticals”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Inotiv | $513.02 million | 0.02 | -$68.62 million | ($2.03) | -0.17 |
| Sonoma Pharmaceuticals | $14.29 million | 0.30 | -$3.46 million | ($2.04) | -1.20 |
Risk and Volatility
Inotiv has a beta of 4.22, suggesting that its stock price is 322% more volatile than the S&P 500. Comparatively, Sonoma Pharmaceuticals has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and price targets for Inotiv and Sonoma Pharmaceuticals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Inotiv | 1 | 0 | 1 | 0 | 2.00 |
| Sonoma Pharmaceuticals | 1 | 0 | 0 | 0 | 1.00 |
Inotiv currently has a consensus target price of $1.50, suggesting a potential upside of 340.79%. Given Inotiv’s stronger consensus rating and higher probable upside, analysts clearly believe Inotiv is more favorable than Sonoma Pharmaceuticals.
Profitability
This table compares Inotiv and Sonoma Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Inotiv | -13.50% | -28.95% | -5.22% |
| Sonoma Pharmaceuticals | -19.04% | -42.56% | -11.97% |
Institutional and Insider Ownership
18.2% of Inotiv shares are held by institutional investors. Comparatively, 2.0% of Sonoma Pharmaceuticals shares are held by institutional investors. 7.8% of Inotiv shares are held by company insiders. Comparatively, 24.6% of Sonoma Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Inotiv beats Sonoma Pharmaceuticals on 11 of the 14 factors compared between the two stocks.
About Inotiv
Inotiv, Inc. provides nonclinical and analytical drug discovery and development services to the pharmaceutical and medical device industries. It operates through two segment: Discovery and Safety Assessment (DSA), and Research Models and Services (RMS). The DMS segment manufactured scientific instruments for life sciences research and the related software for use by pharmaceutical companies, universities, government research centers, and medical research institutions under the Company's BASi product line. The RMS segment engages in commercial production and sales of research models, diets, bedding, and bioproducts. The company offers research and discovery services, including computational toxicology, disease pharmacology, DMPK, safety pharmacology, discovery bioanalysis, exploratory, surgical models and medical device, and cell and molecular biology; non-clinical safety assessment includes general and genetic toxicology, regulated bioanalysis, carcinogenicity studies, and development and reproductive toxicology; pathology services, such as histology, digital, clinical, and medical device pathology; bioanalysis includes nonregulated discovery bioanalysis, biotherapeutics, and regulated preclinical and clinical bioanalysis; proteomics; and consulting services, as well as model and research services. The company operates in the United States, the Netherlands, and internationally. The company was formerly known as Bioanalytical Systems, Inc. and changed its name to Inotiv, Inc. in March 2021. Inotiv, Inc. was incorporated in 1974 and is headquartered in West Lafayette, Indiana.
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.
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