Critical Contrast: Sanuwave Health (NASDAQ:SNWV) & Capricor Therapeutics (NASDAQ:CAPR)

Capricor Therapeutics (NASDAQ:CAPR) and Sanuwave Health (NASDAQ:SNWV) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.

Analyst Ratings

This is a breakdown of current ratings and price targets for Capricor Therapeutics and Sanuwave Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capricor Therapeutics	0	0	7	1	3.13
Sanuwave Health	0	0	2	1	3.33

Capricor Therapeutics presently has a consensus target price of $22.25, indicating a potential upside of 179.17%. Sanuwave Health has a consensus target price of $55.00, indicating a potential upside of 50.40%. Given Capricor Therapeutics’ higher possible upside, research analysts plainly believe Capricor Therapeutics is more favorable than Sanuwave Health.

Profitability

This table compares Capricor Therapeutics and Sanuwave Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capricor Therapeutics	N/A	-62.71%	-50.82%
Sanuwave Health	-97.03%	N/A	-135.15%

Earnings and Valuation

This table compares Capricor Therapeutics and Sanuwave Health”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capricor Therapeutics	$22.27 million	16.36	-$40.47 million	($1.64)	-4.86
Sanuwave Health	$39.19 million	7.99	-$31.37 million	($8.25)	-4.43

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

Risk and Volatility

Capricor Therapeutics has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Sanuwave Health has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Institutional & Insider Ownership

21.7% of Capricor Therapeutics shares are held by institutional investors. Comparatively, 42.5% of Sanuwave Health shares are held by institutional investors. 10.5% of Capricor Therapeutics shares are held by company insiders. Comparatively, 14.9% of Sanuwave Health shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Sanuwave Health beats Capricor Therapeutics on 8 of the 14 factors compared between the two stocks.

About Capricor Therapeutics

Capricor Therapeutics, Inc. (NASDAQ:CAPR) is a clinical-stage biotechnology company focused on the discovery, development and commercialization of first-in-class biological therapeutics for the treatment of rare disorders. Capricor’s lead candidate, CAP-1002, is an allogeneic cell therapy that is currently in clinical development for the treatment of Duchenne muscular dystrophy. Capricor has also established itself as one of the leading companies investigating the field of extracellular vesicles and is exploring the potential of CAP-2003, a cell-free, exosome-based candidate, to treat a variety of disorders.

About Sanuwave Health

SANUWAVE Health, Inc., a shock wave technology company, researches, develops, and commercializes noninvasive, high-energy, and acoustic shock waves for regenerative medicine and other applications in the United States and internationally. Its shockwaves are used to produce a biological response resulting in the body healing itself through the repair and regeneration of tissue, and musculoskeletal and vascular structures. The company’s lead regenerative product is the dermaPACE device for treating diabetic foot ulcers. Its portfolio of healthcare products and product candidates activate biologic signaling and angiogenic responses, including new vascularization and microcirculatory improvement, which helps to restore the body’s normal healing processes and regeneration. The company also focuses on applying its Pulsed Acoustic Cellular Expression technology in wound healing, orthopedic, plastic/cosmetic, and cardiac conditions. In addition, it offers UltraMIST, non-contact and non-thermal ultrasound therapy device used to treat diabetic foot ulcers, pressure ulcers, venous leg ulcers, deep tissue pressure injuries, and surgical wounds; and orthoPACE system to treat tendinopathies and acute and nonunion fractures. The company was founded in 2005 and is headquartered in Suwanee, Georgia.