Cyclo Therapeutics (NASDAQ:CYTH) and SOPHiA GENETICS (NASDAQ:SOPH) Critical Review

SOPHiA GENETICS (NASDAQ:SOPH) and Cyclo Therapeutics (NASDAQ:CYTH) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares SOPHiA GENETICS and Cyclo Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SOPHiA GENETICS	-102.84%	-47.40%	-34.54%
Cyclo Therapeutics	-1,830.27%	-2,741.89%	-269.95%

Insider and Institutional Ownership

31.6% of SOPHiA GENETICS shares are owned by institutional investors. Comparatively, 68.6% of Cyclo Therapeutics shares are owned by institutional investors. 4.9% of SOPHiA GENETICS shares are owned by insiders. Comparatively, 29.8% of Cyclo Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

SOPHiA GENETICS has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Cyclo Therapeutics has a beta of -0.38, meaning that its stock price is 138% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for SOPHiA GENETICS and Cyclo Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SOPHiA GENETICS	0	1	3	0	2.75
Cyclo Therapeutics	0	2	1	0	2.33

SOPHiA GENETICS currently has a consensus target price of $6.50, indicating a potential upside of 69.71%. Cyclo Therapeutics has a consensus target price of $1.97, indicating a potential upside of 182.16%. Given Cyclo Therapeutics’ higher probable upside, analysts plainly believe Cyclo Therapeutics is more favorable than SOPHiA GENETICS.

Earnings and Valuation

This table compares SOPHiA GENETICS and Cyclo Therapeutics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SOPHiA GENETICS	$64.94 million	3.86	-$78.98 million	($1.12)	-3.42
Cyclo Therapeutics	$1.13 million	17.61	-$20.06 million	($1.00)	-0.70

Cyclo Therapeutics has lower revenue, but higher earnings than SOPHiA GENETICS. SOPHiA GENETICS is trading at a lower price-to-earnings ratio than Cyclo Therapeutics, indicating that it is currently the more affordable of the two stocks.

About SOPHiA GENETICS

SOPHiA GENETICS SA operates as a cloud-native software technology company in the healthcare space. The company offers SOPHiA DDM platform, a cloud-native software platform for analyzing data and generating insights from multimodal data sets and diagnostic modalities. Its SOPHiA DDM platform and related solutions, applications, products, and services are used by hospitals, laboratories, and biopharmaceutical companies through its own sales force as well as distributors and industry collaborators in Switzerland, France, Italy, rest of Europe, North America, the United States, Latin America, and the Asia-pacific. SOPHiA GENETICS SA was incorporated in 2011 and is headquartered in Rolle, Switzerland.

About Cyclo Therapeutics

Cyclo Therapeutics, Inc., a clinical stage biotechnology company, engages in the development of cyclodextrin-based products for the treatment of neurodegenerative diseases. The company's lead drug candidate is Trappsol Cyclo (hydroxypropyl beta cyclodextrin), an orphan drug, which is in Phase III clinical trials for the treatment of Niemann-Pick Type C disease; and in Phase IIb clinical trials for the treatment of Alzheimer's disease. It also sells cyclodextrins and related products to the pharmaceutical, nutritional, and other industries, primarily for use in diagnostics and specialty drugs. The company was formerly known as CTD Holdings, Inc. and changed its name to Cyclo Therapeutics, Inc. in September 2019. Cyclo Therapeutics, Inc. was incorporated in 1990 and is headquartered in Gainesville, Florida.