Comparing Pulmonx (NASDAQ:LUNG) & Strata Skin Sciences (NASDAQ:SSKN)

Pulmonx (NASDAQ:LUNG) and Strata Skin Sciences (NASDAQ:SSKN) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.

Risk and Volatility

Pulmonx has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, Strata Skin Sciences has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500.

Profitability

This table compares Pulmonx and Strata Skin Sciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pulmonx	-59.67%	-82.79%	-38.20%
Strata Skin Sciences	-35.64%	-476.73%	-33.49%

Insider & Institutional Ownership

91.0% of Pulmonx shares are held by institutional investors. Comparatively, 32.4% of Strata Skin Sciences shares are held by institutional investors. 6.8% of Pulmonx shares are held by insiders. Comparatively, 40.9% of Strata Skin Sciences shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Pulmonx and Strata Skin Sciences”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pulmonx	$90.50 million	0.69	-$54.00 million	($1.33)	-1.11
Strata Skin Sciences	$30.98 million	0.03	-$10.09 million	($1.41)	-0.12

Strata Skin Sciences has lower revenue, but higher earnings than Pulmonx. Pulmonx 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.

Analyst Recommendations

This is a summary of current ratings and target prices for Pulmonx and Strata Skin Sciences, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pulmonx	1	3	4	0	2.38
Strata Skin Sciences	1	0	0	0	1.00

Pulmonx currently has a consensus target price of $5.38, suggesting a potential upside of 265.89%. Given Pulmonx’s stronger consensus rating and higher possible upside, analysts plainly believe Pulmonx is more favorable than Strata Skin Sciences.

Summary

Pulmonx beats Strata Skin Sciences on 8 of the 14 factors compared between the two stocks.

About Pulmonx

Pulmonx Corporation, a commercial-stage medical technology company, provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases. The company offers Zephyr Endobronchial Valve, a solution for the treatment of patients with hyperinflation associated with severe emphysema; and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation. It also offers StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis service that offers information on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes for the treatment with Zephyr Valves. The company serves emphysema patients in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company was formerly known as Pulmonx and changed its name to Pulmonx Corporation in December 2013. Pulmonx Corporation was incorporated in 1995 and is headquartered in Redwood City, California.

About Strata Skin Sciences

STRATA Skin Sciences, Inc., a medical technology company, develops, commercializes, and markets products for the treatment of dermatologic conditions in the United States, Europe, the Middle East, Asia, Australia, South Africa, and Central and South America. The company operates in two segments, Dermatology Recurring Procedures and Dermatology Procedures Equipment. The company products include XTRAC and Pharos excimer lasers, and VTRAC lamp systems for the treatment systems that are used for the treatment of psoriasis, vitiligo, and other skin conditions. It also offers TheraClear Acne Therapy System for the treatment of mild to moderate inflammatory, comedonal, and pustular acne. The company was formerly known as MELA Sciences, Inc and changed its name to STRATA Skin Sciences, Inc. in January 2016. STRATA Skin Sciences, Inc. was incorporated in 1989 and is based in Horsham, Pennsylvania.