Cellectis (NASDAQ:CLLS) and Sorrento Therapeutics (NASDAQ:SRNE) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.
Volatility & Risk
Cellectis has a beta of 2.59, indicating that its share price is 159% more volatile than the S&P 500. Comparatively, Sorrento Therapeutics has a beta of 2.7, indicating that its share price is 170% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for Cellectis and Sorrento Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Cellectis | 1 | 1 | 3 | 0 | 2.40 |
Sorrento Therapeutics | 0 | 0 | 4 | 0 | 3.00 |
Cellectis presently has a consensus price target of $24.25, indicating a potential upside of 6.88%. Sorrento Therapeutics has a consensus price target of $28.75, indicating a potential upside of 180.49%. Given Sorrento Therapeutics' stronger consensus rating and higher probable upside, analysts plainly believe Sorrento Therapeutics is more favorable than Cellectis.
Valuation and Earnings
This table compares Cellectis and Sorrento Therapeutics' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Cellectis | $22.99 million | 41.93 | $-102,090,000.00 | ($2.41) | -9.41 |
Sorrento Therapeutics | $31.43 million | 91.42 | $-292,070,000.00 | ($2.12) | -4.83 |
Cellectis has higher earnings, but lower revenue than Sorrento Therapeutics. Cellectis is trading at a lower price-to-earnings ratio than Sorrento Therapeutics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Cellectis and Sorrento Therapeutics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Cellectis | -110.52% | -23.56% | -16.69% |
Sorrento Therapeutics | -698.01% | -314.06% | -43.60% |
Institutional & Insider Ownership
33.3% of Cellectis shares are owned by institutional investors. Comparatively, 27.4% of Sorrento Therapeutics shares are owned by institutional investors. 16.4% of Cellectis shares are owned by insiders. Comparatively, 3.4% of Sorrento Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Sorrento Therapeutics beats Cellectis on 8 of the 14 factors compared between the two stocks.