DarioHealth (NASDAQ:DRIO – Get Free Report) and Sonoma Pharmaceuticals (NASDAQ:SNOA – Get Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.
Analyst Ratings
This is a breakdown of current ratings and target prices for DarioHealth and Sonoma Pharmaceuticals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DarioHealth | 0 | 1 | 1 | 0 | 2.50 |
| Sonoma Pharmaceuticals | 0 | 0 | 0 | 0 | 0.00 |
DarioHealth currently has a consensus price target of $1.50, suggesting a potential upside of 167.86%. Given DarioHealth’s stronger consensus rating and higher probable upside, research analysts clearly believe DarioHealth is more favorable than Sonoma Pharmaceuticals.
Risk & Volatility
Institutional & Insider Ownership
33.4% of DarioHealth shares are held by institutional investors. Comparatively, 2.0% of Sonoma Pharmaceuticals shares are held by institutional investors. 10.9% of DarioHealth shares are held by company insiders. Comparatively, 3.9% of Sonoma Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares DarioHealth and Sonoma Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DarioHealth | -205.62% | -72.16% | -40.74% |
| Sonoma Pharmaceuticals | -26.82% | -68.98% | -26.39% |
Valuation and Earnings
This table compares DarioHealth and Sonoma Pharmaceuticals”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DarioHealth | $27.04 million | 0.86 | -$59.43 million | ($0.62) | -0.90 |
| Sonoma Pharmaceuticals | $13.97 million | 0.23 | -$4.84 million | ($4.02) | -0.50 |
Sonoma Pharmaceuticals has lower revenue, but higher earnings than DarioHealth. DarioHealth is trading at a lower price-to-earnings ratio than Sonoma Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Summary
DarioHealth beats Sonoma Pharmaceuticals on 8 of the 14 factors compared between the two stocks.
About DarioHealth
DarioHealth Corp. operates as a digital health company in the United States, Canada, the European Union, Australia, and New Zealand. Its digital therapeutics platform and suite of solutions deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health. The company offers Dario Evolve, a metabolic solution to address metabolic health needs, such as diabetes, pre-diabetes, hypertension, and weight management; Dario Move, which address most common musculoskeletal conditions; Dario Elevate, a behavioral health solution that optimizes access to evidence-based care; and Dario One, a full suite of chronic condition management solution; and Dario blood glucose monitoring systems. It also provides native devices, such as glucose meter, blood pressure cuff, digital scale, and biofeedback sensor device, as well as live coaching services. The company was formerly known as LabStyle Innovations Corp. and changed its name to DarioHealth Corp. in July 2016. DarioHealth Corp. was incorporated in 2011 and is based in New York, New York.
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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