Sonoma Pharmaceuticals (NASDAQ:SNOA) and SCYNEXIS (NASDAQ:SCYX) Critical Analysis

Sonoma Pharmaceuticals (NASDAQ:SNOA) and SCYNEXIS (NASDAQ:SCYX) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Profitability

This table compares Sonoma Pharmaceuticals and SCYNEXIS’s 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%
SCYNEXIS	-41.79%	-44.15%	-32.61%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Sonoma Pharmaceuticals and SCYNEXIS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonoma Pharmaceuticals	1	0	0	0	1.00
SCYNEXIS	1	0	2	0	2.33

SCYNEXIS has a consensus price target of $33.00, suggesting a potential upside of 639.91%. Given SCYNEXIS’s stronger consensus rating and higher probable upside, analysts plainly believe SCYNEXIS is more favorable than Sonoma Pharmaceuticals.

Insider and Institutional Ownership

1.9% of Sonoma Pharmaceuticals shares are held by institutional investors. Comparatively, 54.4% of SCYNEXIS shares are held by institutional investors. 1.0% of Sonoma Pharmaceuticals shares are held by insiders. Comparatively, 4.1% of SCYNEXIS shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Sonoma Pharmaceuticals and SCYNEXIS”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonoma Pharmaceuticals	$19.53 million	0.31	-$3.17 million	($1.22)	-1.05
SCYNEXIS	$20.60 million	2.15	-$8.61 million	($2.09)	-2.13

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

Risk & Volatility

Sonoma Pharmaceuticals has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, SCYNEXIS has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

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 SCYNEXIS

SCYNEXIS, Inc., a biotechnology company, develops medicines to overcome and prevent difficult-to-treat and drug-resistant infections in the United States. It offers BREXAFEMME for the treatment of patients with vulvovaginal candidiasis (VVC) and recurrent VVC. The company's lead product candidate is Ibrexafungerp, an intravenous drug for the treatment of invasive candidiasis and/or candidemia, refractory invasive fungal infections, invasive aspergillosis, VVC, and recurrent VVC. It also develops SCY-247 to treat systemic fungal diseases. The company has licensing and collaboration agreements with GlaxoSmithKline Intellectual Property (No. 3) Limited, Merck Sharp & Dohme Corp., Hansoh (Shanghai) Health Technology Co., Ltd., Jiangsu Hansoh Pharmaceutical Group Company Limited, and R-Pharm, CJSC for the development, manufacture, and commercialization of ibrexafungerp. SCYNEXIS, Inc. was formerly known as SCYNEXIS Chemistry & Automation, Inc. and changed its name to SCYNEXIS, Inc. in June 2002. The company was incorporated in 1999 and is headquartered in Jersey City, New Jersey.