Sorrento Therapeutics (NASDAQ:SRNE) and Rubius Therapeutics (NASDAQ:RUBY) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Sorrento Therapeutics and Rubius Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Sorrento Therapeutics | 0 | 0 | 2 | 0 | 3.00 |
| Rubius Therapeutics | 0 | 3 | 2 | 0 | 2.40 |
Sorrento Therapeutics presently has a consensus target price of $27.00, suggesting a potential upside of 184.21%. Rubius Therapeutics has a consensus target price of $11.40, suggesting a potential upside of 20.25%. Given Sorrento Therapeutics' stronger consensus rating and higher probable upside, research analysts clearly believe Sorrento Therapeutics is more favorable than Rubius Therapeutics.
Insider and Institutional Ownership
24.1% of Sorrento Therapeutics shares are held by institutional investors. Comparatively, 95.1% of Rubius Therapeutics shares are held by institutional investors. 3.4% of Sorrento Therapeutics shares are held by insiders. Comparatively, 58.4% of Rubius Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Sorrento Therapeutics and Rubius Therapeutics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Sorrento Therapeutics | -760.19% | -490.67% | -38.31% |
| Rubius Therapeutics | N/A | -69.59% | -46.80% |
Volatility and Risk
Sorrento Therapeutics has a beta of 2.61, indicating that its stock price is 161% more volatile than the S&P 500. Comparatively, Rubius Therapeutics has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500.
Valuation & Earnings
This table compares Sorrento Therapeutics and Rubius Therapeutics' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Sorrento Therapeutics | $31.43 million | 79.48 | $-292,070,000.00 | ($2.12) | -4.48 |
| Rubius Therapeutics | N/A | N/A | $-163,460,000.00 | ($2.08) | -4.56 |
Rubius Therapeutics has lower revenue, but higher earnings than Sorrento Therapeutics. Rubius Therapeutics is trading at a lower price-to-earnings ratio than Sorrento Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
Rubius Therapeutics beats Sorrento Therapeutics on 7 of the 12 factors compared between the two stocks.
