STRATA Skin Sciences (NASDAQ: SSKN) and TearLab (OTCMKTS:TEAR) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.
This table compares STRATA Skin Sciences and TearLab’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|STRATA Skin Sciences||-60.23%||-36.19%||-17.75%|
Volatility & Risk
STRATA Skin Sciences has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, TearLab has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.
Insider & Institutional Ownership
14.0% of STRATA Skin Sciences shares are owned by institutional investors. Comparatively, 0.2% of TearLab shares are owned by institutional investors. 10.0% of STRATA Skin Sciences shares are owned by insiders. Comparatively, 5.2% of TearLab shares are owned 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.
Earnings & Valuation
This table compares STRATA Skin Sciences and TearLab’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|STRATA Skin Sciences||$31.45 million||0.47||-$18.83 million||$1.97||1.06|
|TearLab||$27.12 million||0.06||-$16.10 million||($2.70)||-0.06|
TearLab has lower revenue, but higher earnings than STRATA Skin Sciences. TearLab 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.
This is a breakdown of recent recommendations for STRATA Skin Sciences and TearLab, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|STRATA Skin Sciences||0||0||1||0||3.00|
STRATA Skin Sciences currently has a consensus price target of $3.00, suggesting a potential upside of 44.23%. TearLab has a consensus price target of $4.00, suggesting a potential upside of 2,584.56%. Given TearLab’s higher possible upside, analysts clearly believe TearLab is more favorable than STRATA Skin Sciences.
STRATA Skin Sciences beats TearLab on 6 of the 11 factors compared between the two stocks.
About STRATA Skin Sciences
STRATA Skin Sciences, Inc., a medical technology company, focuses on the therapeutic and aesthetic dermatology market. The company operates through three segments: Dermatology Recurring Procedures, Dermatology Procedures Equipment, and Dermatology Imaging. Its products include XTRAC laser and VTRAC excimer lamp systems used for the treatment of psoriasis, vitiligo, and other skin conditions; the STRATAPEN MicroSystems, a micropigmentation device; and Nordlys, a multi-technology aesthetic laser device for treating vascular and pigmented lesions. STRATA Skin Sciences, Inc. was founded in 1989 and is based in Horsham, Pennsylvania.
TearLab Corporation operates as an in-vitro diagnostic company in the United States and internationally. It offers TearLab Osmolority System, a proprietary in vitro diagnostic tear testing platform that measures tear film osmolarity for the diagnosis of dry eye disease; and enables eye care practitioners to test for sensitive and specific biomarkers using nanoliters of tear film at the point-of-care. Its TearLab Osmolarity System consists of TearLab disposable, a single-use microfluidic microchip; TearLab pen, a hand-held device that interfaces with the TearLab disposable; and TearLab reader, a small desktop unit that allows for the docking of the TearLab pen, as well as provides a quantitative reading for the operator. The company was formerly known as OccuLogix, Inc. TearLab Corporation was founded in 1996 and is headquartered in San Diego, California.
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