Financial Comparison: Sanuwave Health (NASDAQ:SNWV) versus Capricor Therapeutics (NASDAQ:CAPR)

Sanuwave Health (NASDAQ:SNWV) and Capricor Therapeutics (NASDAQ:CAPR) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Volatility and Risk

Sanuwave Health has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Capricor Therapeutics has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Institutional & Insider Ownership

42.5% of Sanuwave Health shares are held by institutional investors. Comparatively, 21.7% of Capricor Therapeutics shares are held by institutional investors. 14.9% of Sanuwave Health shares are held by insiders. Comparatively, 10.5% of Capricor Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Sanuwave Health and Capricor Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sanuwave Health	-97.03%	N/A	-135.15%
Capricor Therapeutics	N/A	-62.71%	-50.82%

Analyst Ratings

This is a summary of recent ratings and target prices for Sanuwave Health and Capricor Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sanuwave Health	1	0	2	1	2.75
Capricor Therapeutics	1	0	7	1	2.89

Sanuwave Health currently has a consensus target price of $55.00, indicating a potential upside of 46.94%. Capricor Therapeutics has a consensus target price of $22.25, indicating a potential upside of 202.31%. Given Capricor Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Capricor Therapeutics is more favorable than Sanuwave Health.

Earnings & Valuation

This table compares Sanuwave Health and Capricor Therapeutics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sanuwave Health	$32.63 million	9.83	-$31.37 million	($8.25)	-4.54
Capricor Therapeutics	$22.27 million	15.11	-$40.47 million	($1.64)	-4.49

Sanuwave Health has higher revenue and earnings than Capricor Therapeutics. Sanuwave Health is trading at a lower price-to-earnings ratio than Capricor Therapeutics, indicating that it is currently the more affordable of the two stocks.

Summary

Capricor Therapeutics beats Sanuwave Health on 8 of the 14 factors compared between the two stocks.

About Sanuwave Health

SANUWAVE Health, Inc., a shock wave technology company, researches, develops, and commercializes noninvasive, high-energy, and acoustic shock waves for regenerative medicine and other applications in the United States and internationally. Its shockwaves are used to produce a biological response resulting in the body healing itself through the repair and regeneration of tissue, and musculoskeletal and vascular structures. The company’s lead regenerative product is the dermaPACE device for treating diabetic foot ulcers. Its portfolio of healthcare products and product candidates activate biologic signaling and angiogenic responses, including new vascularization and microcirculatory improvement, which helps to restore the body’s normal healing processes and regeneration. The company also focuses on applying its Pulsed Acoustic Cellular Expression technology in wound healing, orthopedic, plastic/cosmetic, and cardiac conditions. In addition, it offers UltraMIST, non-contact and non-thermal ultrasound therapy device used to treat diabetic foot ulcers, pressure ulcers, venous leg ulcers, deep tissue pressure injuries, and surgical wounds; and orthoPACE system to treat tendinopathies and acute and nonunion fractures. The company was founded in 2005 and is headquartered in Suwanee, Georgia.

About Capricor Therapeutics

Capricor Therapeutics, Inc. (NASDAQ:CAPR) is a clinical-stage biotechnology company focused on the discovery, development and commercialization of first-in-class biological therapeutics for the treatment of rare disorders. Capricor’s lead candidate, CAP-1002, is an allogeneic cell therapy that is currently in clinical development for the treatment of Duchenne muscular dystrophy. Capricor has also established itself as one of the leading companies investigating the field of extracellular vesicles and is exploring the potential of CAP-2003, a cell-free, exosome-based candidate, to treat a variety of disorders.