Sientra (NASDAQ: SIEN) and Capnia (NASDAQ:SLNO) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Sientra and Capnia, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sientra 0 0 3 0 3.00
Capnia 0 0 1 0 3.00

Sientra currently has a consensus target price of $13.67, suggesting a potential upside of 19.26%. Capnia has a consensus target price of $5.00, suggesting a potential upside of 713.01%. Given Capnia’s higher possible upside, analysts plainly believe Capnia is more favorable than Sientra.

Valuation and Earnings

This table compares Sientra and Capnia’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sientra $28.68 million 7.71 -$35.42 million ($2.66) -4.31
Capnia $1.45 million 20.33 -$12.24 million ($0.75) -0.82

Capnia has higher revenue, but lower earnings than Sientra. Sientra is trading at a lower price-to-earnings ratio than Capnia, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Sientra has a beta of -1.55, suggesting that its share price is 255% less volatile than the S&P 500. Comparatively, Capnia has a beta of 6.64, suggesting that its share price is 564% more volatile than the S&P 500.

Profitability

This table compares Sientra and Capnia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sientra -173.83% -52.30% -37.51%
Capnia -1,389.76% -69.67% -58.84%

Insider and Institutional Ownership

77.6% of Sientra shares are held by institutional investors. Comparatively, 34.1% of Capnia shares are held by institutional investors. 28.1% of Sientra shares are held by company insiders. Comparatively, 69.8% of Capnia shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

About Sientra

Sientra, Inc. is a medical aesthetics company. The Company’s primary products are silicone gel breast implants for use in breast augmentation and breast reconstruction procedures, which it offers in over 190 variations of shapes, sizes and textures. The Company sells its breast implants and breast tissue expanders, or breast products to plastic surgeons. Its breast implants are primarily used in elective procedures, which are generally performed on a cash-pay basis. TRUE Texture provides texturing on the implant shell that is designed to reduce the incidence of malposition, rotation and capsular contracture. The Company also offers breast tissue expanders and a range of other aesthetic and specialty products. The Company offers a range of HSC+ breast implants, including anatomically shaped textured, round textured and round smooth. The Company also offers miraDry system, the device to reduce underarm sweat, odor and permanently reduce hair of all colors.

About Capnia

Soleno Therapeutics, Inc., formerly Capnia, Inc., is a healthcare company that develops and commercializes neonatology devices and diagnostics. The Company also has a therapeutics platform based on its proprietary technology for precision metering of gas flow. The Company offers products, such as CoSense end-tidal carbon monoxide (ETCO) Monitor, NeoPIP Infant Resuscitator and Accessories, and Serenz Nasal Relief. The Company has developed the CoSense End-Tidal Carbon Monoxide Monitor that measures ETCO for the detection of dangerous hemolysis rates. The Infant Solutions product line, including the NeoPIP Infant Resuscitator Unit and accessories, is designed for controlled and accurate resuscitation of neonates and infants in the clinical environment. Serenz Nasal Relief is a hand-held nasal irrigator that uses carbon dioxide (CO2) gas to wash the nasal passages.

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