Sutro Biopharma (NASDAQ:STRO) and NanoString Technologies (NASDAQ:NSTG) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.
Insider and Institutional Ownership
78.8% of Sutro Biopharma shares are owned by institutional investors. Comparatively, 98.3% of NanoString Technologies shares are owned by institutional investors. 28.9% of Sutro Biopharma shares are owned by insiders. Comparatively, 4.2% of NanoString Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Sutro Biopharma and NanoString Technologies' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Sutro Biopharma | $42.74 million | 18.33 | $-55,740,000.00 | ($2.43) | -8.35 |
| NanoString Technologies | $125.57 million | 21.41 | $-40,700,000.00 | ($1.93) | -31.61 |
NanoString Technologies has higher revenue and earnings than Sutro Biopharma. NanoString Technologies is trading at a lower price-to-earnings ratio than Sutro Biopharma, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Sutro Biopharma and NanoString Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Sutro Biopharma | 0 | 1 | 6 | 0 | 2.86 |
| NanoString Technologies | 0 | 1 | 5 | 0 | 2.83 |
Sutro Biopharma presently has a consensus target price of $23.3333, indicating a potential upside of 15.00%. NanoString Technologies has a consensus target price of $63.00, indicating a potential upside of 3.26%. Given Sutro Biopharma's stronger consensus rating and higher possible upside, research analysts clearly believe Sutro Biopharma is more favorable than NanoString Technologies.
Volatility and Risk
Sutro Biopharma has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, NanoString Technologies has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500.
Profitability
This table compares Sutro Biopharma and NanoString Technologies' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Sutro Biopharma | 27.60% | -41.86% | -29.50% |
| NanoString Technologies | -53.47% | -68.96% | -24.15% |
Summary
NanoString Technologies beats Sutro Biopharma on 8 of the 14 factors compared between the two stocks.
