Comparing Electromed (NYSE:ELMD) & Soleno Therapeutics (NASDAQ:SLNO)

Soleno Therapeutics (NASDAQ:SLNOGet Free Report) and Electromed (NYSE:ELMDGet Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Institutional and Insider Ownership

97.4% of Soleno Therapeutics shares are owned by institutional investors. Comparatively, 40.8% of Electromed shares are owned by institutional investors. 12.3% of Soleno Therapeutics shares are owned by company insiders. Comparatively, 12.7% of Electromed shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Soleno Therapeutics and Electromed, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Soleno Therapeutics 0 0 6 1 3.14
Electromed 0 0 0 0 N/A

Soleno Therapeutics presently has a consensus price target of $60.33, indicating a potential upside of 47.95%. Given Soleno Therapeutics’ higher possible upside, research analysts plainly believe Soleno Therapeutics is more favorable than Electromed.

Profitability

This table compares Soleno Therapeutics and Electromed’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Soleno Therapeutics N/A -61.84% -46.87%
Electromed 8.14% 10.97% 9.38%

Valuation & Earnings

This table compares Soleno Therapeutics and Electromed’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Soleno Therapeutics N/A N/A -$38.99 million ($2.68) -15.22
Electromed $48.07 million 2.55 $3.17 million $0.50 28.34

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

Risk and Volatility

Soleno Therapeutics has a beta of -1.51, suggesting that its share price is 251% less volatile than the S&P 500. Comparatively, Electromed has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Summary

Electromed beats Soleno Therapeutics on 9 of the 13 factors compared between the two stocks.

About Soleno Therapeutics

(Get Free Report)

Soleno Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of novel therapeutics for the treatment of rare diseases. Its lead candidate is Diazoxide Choline Extended-Release tablets, a once-daily oral tablet, which is in Phase III clinical trials for the treatment of Prader-Willi Syndrome. The company was formerly known as Capnia, Inc. and changed its name to Soleno Therapeutics, Inc. in May 2017. Soleno Therapeutics, Inc. was incorporated in 1999 and is based in Redwood City, California.

About Electromed

(Get Free Report)

Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy and related products that apply high frequency chest wall oscillation (HFCWO) therapy in pulmonary care for patients of various ages in the United States and internationally. The company offers SmartVest airway clearance system; SmartVest SQL System that consists of an inflatable therapy garment, a programmable air pulse generator, and a patented single-hose that delivers air pulses from the generator to the garment; and SmartVest Connect, a wireless technology with personalized HFCWO therapy management portal for patients with compromised pulmonary function. It also provides single patient use SmartVest and SmartVest Wrap products for health care providers in the acute care setting. The company offers its products primarily to home health care and institutional markets for patients with bronchiectasis, cystic fibrosis, and neuromuscular diseases. It markets its products primarily to physicians and health care providers, as well as directly to patients. Electromed, Inc. was incorporated in 1992 and is headquartered in New Prague, Minnesota.

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