Critical Analysis: Soleno Therapeutics (NASDAQ:SLNO) & Pixie Dust Technologies (NASDAQ:PXDT)

Soleno Therapeutics (NASDAQ:SLNO) and Pixie Dust Technologies (NASDAQ:PXDT) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Institutional and Insider Ownership

97.4% of Soleno Therapeutics shares are held by institutional investors. Comparatively, 0.4% of Pixie Dust Technologies shares are held by institutional investors. 12.3% of Soleno Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Soleno Therapeutics and Pixie Dust Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Soleno Therapeutics	0	0	6	1	3.14
Pixie Dust Technologies	0	0	1	0	3.00

Soleno Therapeutics presently has a consensus price target of $74.83, suggesting a potential upside of 57.05%. Pixie Dust Technologies has a consensus price target of $5.21, suggesting a potential upside of 798.28%. Given Pixie Dust Technologies’ higher possible upside, analysts clearly believe Pixie Dust Technologies is more favorable than Soleno Therapeutics.

Volatility & Risk

Soleno Therapeutics has a beta of -1.47, suggesting that its share price is 247% less volatile than the S&P 500. Comparatively, Pixie Dust Technologies has a beta of -0.25, suggesting that its share price is 125% less volatile than the S&P 500.

Valuation & Earnings

This table compares Soleno Therapeutics and Pixie Dust Technologies”s top-line 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	($3.32)	-14.35
Pixie Dust Technologies	$993.02 million	0.01	-$12.53 million	N/A	N/A

Pixie Dust Technologies has higher revenue and earnings than Soleno Therapeutics.

Profitability

This table compares Soleno Therapeutics and Pixie Dust Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Soleno Therapeutics	N/A	-61.99%	-55.21%
Pixie Dust Technologies	N/A	N/A	N/A

Summary

Pixie Dust Technologies beats Soleno Therapeutics on 6 of the 11 factors compared between the two stocks.

About Soleno Therapeutics

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 Pixie Dust Technologies

Pixie Dust Technologies, Inc., a technology company, focuses on personal care and diversity, and workspace and digital transformation businesses primarily in Japan. It offers SonoRepro, an ultrasonic non-contact vibrotactile stimulation scalp care device; VUEVO, a series of directional voice arrival detection devices for individuals with deaf and hard-of-hearing; and kikippa, an acoustic stimulation device functioning as a desk-top speaker. The company also provides iwasemi, a sound-absorbing or sound-proofing material for architectural and interior design firms; hackke, a location positioning technology; KOTOWARI, a technology offering spatial analysis data; and magickiri, a planning services and monitoring service, which monitors human behavior and analyzes the customer's environment on the customer's behalf. In addition, it operates Pixie Nest, a membership forum, which hosts meetings and distributes information to facilitate solving social issues. The company was incorporated in 2017 and is headquartered in Tokyo, Japan.