Financial Analysis: Sientra (SIEN) vs. Capnia (SLNO)
Sientra (NASDAQ: SIEN) and Capnia (NASDAQ:SLNO) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.
This table compares Sientra and Capnia’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Sientra has a beta of -1.55, meaning that its share price is 255% less volatile than the S&P 500. Comparatively, Capnia has a beta of 6.64, meaning that its share price is 564% more volatile than the S&P 500.
This is a breakdown of current ratings for Sientra and Capnia, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sientra currently has a consensus target price of $13.50, indicating a potential upside of 33.80%. Capnia has a consensus target price of $5.00, indicating a potential upside of 923.54%. Given Capnia’s higher probable upside, analysts plainly believe Capnia is more favorable than Sientra.
Institutional and Insider Ownership
78.6% of Sientra shares are owned by institutional investors. Comparatively, 34.4% of Capnia shares are owned by institutional investors. 28.1% of Sientra shares are owned by company insiders. Comparatively, 69.8% of Capnia shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Sientra and Capnia’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sientra||$28.68 million||6.79||-$35.42 million||($2.66)||-3.79|
|Capnia||$1.45 million||16.14||-$12.24 million||($0.75)||-0.65|
Capnia has higher revenue, but lower earnings than Sientra. Sientra is trading at a lower price-to-earnings ratio than Capnia, indicating that it is currently the more affordable of the two stocks.
Sientra, Inc. is a medical aesthetics company. The Company’s primary products are silicone gel breast implants for use in breast augmentation and breast reconstruction procedures, which it offers in over 190 variations of shapes, sizes and textures. The Company sells its breast implants and breast tissue expanders, or breast products to plastic surgeons. Its breast implants are primarily used in elective procedures, which are generally performed on a cash-pay basis. TRUE Texture provides texturing on the implant shell that is designed to reduce the incidence of malposition, rotation and capsular contracture. The Company also offers breast tissue expanders and a range of other aesthetic and specialty products. The Company offers a range of HSC+ breast implants, including anatomically shaped textured, round textured and round smooth. The Company also offers miraDry system, the device to reduce underarm sweat, odor and permanently reduce hair of all colors.
Soleno Therapeutics, Inc., formerly Capnia, Inc., is a healthcare company that develops and commercializes neonatology devices and diagnostics. The Company also has a therapeutics platform based on its proprietary technology for precision metering of gas flow. The Company offers products, such as CoSense end-tidal carbon monoxide (ETCO) Monitor, NeoPIP Infant Resuscitator and Accessories, and Serenz Nasal Relief. The Company has developed the CoSense End-Tidal Carbon Monoxide Monitor that measures ETCO for the detection of dangerous hemolysis rates. The Infant Solutions product line, including the NeoPIP Infant Resuscitator Unit and accessories, is designed for controlled and accurate resuscitation of neonates and infants in the clinical environment. Serenz Nasal Relief is a hand-held nasal irrigator that uses carbon dioxide (CO2) gas to wash the nasal passages.
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