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

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

Profitability

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

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

Insider and Institutional Ownership

32.4% of Strata Skin Sciences shares are owned by institutional investors. 20.2% of Rennova Health shares are owned by company insiders. Comparatively, 40.9% of Strata Skin Sciences shares are owned by company 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.

Earnings & Valuation

This table compares Rennova Health and Strata Skin Sciences”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rennova Health	$18.69 million	0.00	-$7.73 million	N/A	N/A
Strata Skin Sciences	$33.56 million	0.24	-$10.09 million	($2.67)	-0.50

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

Volatility & Risk

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

Analyst Ratings

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

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

Strata Skin Sciences has a consensus price target of $6.00, suggesting a potential upside of 347.76%. Given Strata Skin Sciences’ stronger consensus rating and higher possible upside, analysts clearly believe Strata Skin Sciences is more favorable than Rennova Health.

Summary

Strata Skin Sciences beats Rennova Health on 6 of the 11 factors compared between the two stocks.

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.

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.