Strata Skin Sciences (NASDAQ: SSKN) and Invuity (NASDAQ:IVTY) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitabiliy, analyst recommendations and institutional ownership.
Risk & Volatility
Strata Skin Sciences has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Invuity has a beta of -0.13, meaning that its share price is 113% less volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Strata Skin Sciences and Invuity, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Strata Skin Sciences||0||0||1||0||3.00|
Strata Skin Sciences currently has a consensus price target of $12.00, indicating a potential upside of 559.34%. Invuity has a consensus price target of $15.20, indicating a potential upside of 139.37%. Given Strata Skin Sciences’ higher probable upside, analysts plainly believe Strata Skin Sciences is more favorable than Invuity.
Earnings & Valuation
This table compares Strata Skin Sciences and Invuity’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Strata Skin Sciences||$31.41 million||0.14||$4.08 million||($3.33)||-0.55|
|Invuity||$36.63 million||2.96||-$35.61 million||($2.51)||-2.53|
Strata Skin Sciences has higher revenue, but lower earnings than Invuity. Invuity is trading at a lower price-to-earnings ratio than Strata Skin Sciences, indicating that it is currently the more affordable of the two stocks.
This table compares Strata Skin Sciences and Invuity’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Strata Skin Sciences||-13.13%||-26.42%||-9.19%|
Institutional & Insider Ownership
94.3% of Strata Skin Sciences shares are owned by institutional investors. Comparatively, 69.6% of Invuity shares are owned by institutional investors. 12.9% of Strata Skin Sciences shares are owned by insiders. Comparatively, 10.5% of Invuity shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Strata Skin Sciences beats Invuity on 8 of the 12 factors compared between the two stocks.
About Strata Skin Sciences
STRATA Skin Sciences, Inc., formerly MELA Sciences, Inc., is a medical technology company. The Company is engaged in developing and commercializing products for the diagnosis and treatment of dermatological disorders. The Company has three segments: Dermatology Recurring Procedures, Dermatology Procedures Equipment and Dermatology Imaging. The XTRAC and VTRAC products are the devices used for the treatment of psoriasis, vitiligo and other skin disorders. The XTRAC system delivers targeted ultraviolet light to affected areas of skin, leading to psoriasis clearing and vitiligo repigmentation, following a series of treatments. The Company’s technology includes XTRAC Excimer Laser, VTRAC Lamp and MelaFind. MelaFind is a non-invasive, point-of-care instrument to aid dermatologists in their decision to biopsy suspicious pigmented lesions, such as melanoma. The Company has approximately two distribution channels for phototherapy treatment equipment.
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