Critical Review: Sonoma Pharmaceuticals (SNOA) vs. Optimer Pharmaceuticals (OPTR)

Sonoma Pharmaceuticals (NASDAQ: SNOA) and Optimer Pharmaceuticals (NASDAQ:OPTR) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Profitability

This table compares Sonoma Pharmaceuticals and Optimer Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sonoma Pharmaceuticals 47.68% -43.23% -35.78%
Optimer Pharmaceuticals N/A N/A N/A

Analyst Ratings

This is a summary of recent ratings for Sonoma Pharmaceuticals and Optimer Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sonoma Pharmaceuticals 0 1 1 0 2.50
Optimer Pharmaceuticals 0 0 0 0 N/A

Sonoma Pharmaceuticals presently has a consensus price target of $10.50, indicating a potential upside of 97.37%.

Earnings and Valuation

This table compares Sonoma Pharmaceuticals and Optimer Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sonoma Pharmaceuticals $12.82 million 1.83 $9.27 million $1.78 2.99
Optimer Pharmaceuticals N/A N/A N/A ($1.74) N/A

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

Insider & Institutional Ownership

9.2% of Sonoma Pharmaceuticals shares are held by institutional investors. 13.3% 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 will outperform the market over the long term.

Summary

Sonoma Pharmaceuticals beats Optimer Pharmaceuticals on 6 of the 8 factors compared between the two stocks.

About Sonoma Pharmaceuticals

Sonoma Pharmaceuticals, Inc., formerly Oculus Innovative Sciences, Inc., is a specialty pharmaceutical company that develops and markets solutions for the treatment of dermatological conditions and advanced tissue care. The Company’s product portfolio consists of dermatology and advanced tissue care products based upon its technologies, such as Microcyn and Lipogrid. Microcyn is a small-molecule oxychlorine compound with antimicrobial and anti-inflammatory properties that, in clinical settings, reduces itch and pain associated with dermal irritations and wounds, such as sores, injuries and ulcers of dermal tissue. Lipogrid Technology contains selected lipids and a lipid precursor designed to penetrate the bilayers of the skin by blending with the natural lipid building blocks. Its products serve over five million patients across the globe by reducing infections, itch, pain, scarring and inflammatory responses. Its products are sold throughout the United States and internationally.

About Optimer Pharmaceuticals

Optimer Pharmaceuticals, Inc. (Optimer) is a biopharmaceutical company focused on developing and commercializing hospital specialty products. The Company’s development is focused on products that treat gastrointestinal infections and related diseases. Its two products OPT-822/821 and CEM-101 (OP-1068) are in clinical development. Optimer’s products include Fidaxomicin and Solithromycin under anti-infectives, and OPT-822/821 under other therapeutic areas. In January 2011, its majority owned subsidiary, Optimer Biotechnology, Inc. (OBI) conducted a Phase 2/3 clinical, trial to evaluate OPT-822/821for the treatment of metastatic breast cancer. On May 27, 2011, the United States Food and Drug Administration (FDA) approved DIFICID(fidaxomicin) tablets, its antibacterial drug for the treatment of adult patients with Clostridium difficile-associated diarrhea (CDAD). In October 2013, Cubist Pharmaceuticals, Inc announced that it has completed its acquisition of Optimer Pharmaceuticals, Inc.

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