BrainsWay (NASDAQ:BWAY) and Sonoma Pharmaceuticals (NASDAQ:SNOA) Head-To-Head Review

BrainsWay (NASDAQ:BWAY) and Sonoma Pharmaceuticals (NASDAQ:SNOA) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Valuation & Earnings

This table compares BrainsWay 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
BrainsWay	$31.78 million	6.44	-$4.20 million	$0.10	108.71
Sonoma Pharmaceuticals	$12.73 million	0.33	-$4.84 million	($4.02)	-0.64

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

Analyst Recommendations

This is a summary of recent ratings and price targets for BrainsWay and Sonoma Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BrainsWay	0	0	3	0	3.00
Sonoma Pharmaceuticals	0	0	0	0	0.00

BrainsWay presently has a consensus price target of $13.17, suggesting a potential upside of 21.13%. Given BrainsWay’s stronger consensus rating and higher probable upside, equities analysts plainly believe BrainsWay is more favorable than Sonoma Pharmaceuticals.

Volatility and Risk

BrainsWay has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Sonoma Pharmaceuticals has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BrainsWay	3.88%	3.52%	2.26%
Sonoma Pharmaceuticals	-26.82%	-68.98%	-26.39%

Insider & Institutional Ownership

30.1% of BrainsWay shares are owned by institutional investors. Comparatively, 2.0% of Sonoma Pharmaceuticals shares are owned by institutional investors. 19.0% of BrainsWay shares are owned by company insiders. Comparatively, 3.9% of Sonoma Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

BrainsWay beats Sonoma Pharmaceuticals on 13 of the 14 factors compared between the two stocks.

About BrainsWay

BrainsWay Ltd. develops and sells noninvasive neurostimulation treatments for mental health disorders in the United States and internationally. It offers Deep Transcranial Magnetic Stimulation platform technology for the treatment of major depressive disorders, anxious depression, obsessive-compulsive disorders, smoking addiction, bipolar disorders, post traumatic stress disorders, schizophrenia, Alzheimer's disease, autism, chronic pain, multiple sclerosis, post stroke rehabilitation, and Parkinson's diseases. The company serves doctors, hospitals, and medical centers in the field of psychiatry. BrainsWay Ltd. was founded in 2003 and is headquartered in Jerusalem, Israel.

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.