Critical Review: Invuity (IVTY) & Strata Skin Sciences (SSKN)

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

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Strata Skin Sciences $31.41 million 0.13 $4.08 million ($3.33) -0.52
Invuity $36.63 million 2.89 -$35.61 million ($2.51) -2.47

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

Profitability

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

Net Margins Return on Equity Return on Assets
Strata Skin Sciences -13.13% -26.42% -9.19%
Invuity -114.61% -140.69% -68.16%

Institutional and Insider Ownership

94.3% of Strata Skin Sciences shares are held by institutional investors. Comparatively, 69.6% of Invuity shares are held by institutional investors. 12.9% of Strata Skin Sciences shares are held by insiders. Comparatively, 10.5% of Invuity shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Strata Skin Sciences and Invuity, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Strata Skin Sciences 0 0 2 0 3.00
Invuity 0 0 6 0 3.00

Strata Skin Sciences presently has a consensus price target of $12.00, suggesting a potential upside of 593.64%. Invuity has a consensus price target of $15.20, suggesting a potential upside of 145.16%. Given Strata Skin Sciences’ higher probable upside, equities research analysts clearly believe Strata Skin Sciences is more favorable than Invuity.

Risk & Volatility

Strata Skin Sciences has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, Invuity has a beta of -0.13, suggesting that its share price is 113% less volatile than the S&P 500.

Summary

Strata Skin Sciences beats Invuity on 8 of the 12 factors compared between the two stocks.

Strata Skin Sciences Company Profile

STRATA Skin Sciences, Inc., formerly MELA Sciences, Inc., is a medical technology company. The Company is engaged in developing and commercializing products for the diagnosis and treatment of dermatological disorders. The Company has three segments: Dermatology Recurring Procedures, Dermatology Procedures Equipment and Dermatology Imaging. The XTRAC and VTRAC products are the devices used for the treatment of psoriasis, vitiligo and other skin disorders. The XTRAC system delivers targeted ultraviolet light to affected areas of skin, leading to psoriasis clearing and vitiligo repigmentation, following a series of treatments. The Company’s technology includes XTRAC Excimer Laser, VTRAC Lamp and MelaFind. MelaFind is a non-invasive, point-of-care instrument to aid dermatologists in their decision to biopsy suspicious pigmented lesions, such as melanoma. The Company has approximately two distribution channels for phototherapy treatment equipment.

What are top analysts saying about Strata Skin Sciences Inc.? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Strata Skin Sciences Inc. and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit