Critical Comparison: Rennova Health (OTCMKTS:RNVA) & Strata Skin Sciences (NASDAQ:SSKN)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Strata Skin Sciences	$33.56 million	0.23	-$10.09 million	($2.67)	-0.49
Rennova Health	$18.69 million	0.23	-$7.73 million	N/A	N/A

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

Volatility and Risk

Strata Skin Sciences has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Rennova Health has a beta of 22.6, indicating that its share price is 2,160% more volatile than the S&P 500.

Insider & Institutional Ownership

32.4% of Strata Skin Sciences shares are held by institutional investors. 40.9% of Strata Skin Sciences shares are held by insiders. Comparatively, 55.5% of Rennova Health shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Strata Skin Sciences and Rennova Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Strata Skin Sciences	1	0	1	0	2.00
Rennova Health	0	0	0	0	0.00

Strata Skin Sciences currently has a consensus price target of $6.00, suggesting a potential upside of 360.48%. Given Strata Skin Sciences’ stronger consensus rating and higher possible upside, research analysts plainly believe Strata Skin Sciences is more favorable than Rennova Health.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Strata Skin Sciences	-35.64%	-476.73%	-33.49%
Rennova Health	N/A	N/A	N/A

Summary

Rennova Health beats Strata Skin Sciences on 7 of the 12 factors compared between the two stocks.

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.

About Rennova Health

Rennova Health, Inc., together with its subsidiaries, provides health care services in the United States. It owns one operating hospital in Oneida, Tennessee; and a rural clinic in Williamsburg, Kentucky. The company is based in West Palm Beach, Florida.