Sorrento Therapeutics (NASDAQ:SRNE) and Vaxart (NASDAQ:VXRT) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.
Analyst Recommendations
This is a summary of current recommendations and price targets for Sorrento Therapeutics and Vaxart, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Sorrento Therapeutics | 0 | 0 | 3 | 0 | 3.00 |
| Vaxart | 0 | 0 | 2 | 0 | 3.00 |
Sorrento Therapeutics currently has a consensus price target of $25.00, indicating a potential upside of 159.47%. Vaxart has a consensus price target of $19.50, indicating a potential upside of 163.51%. Given Vaxart's higher possible upside, analysts plainly believe Vaxart is more favorable than Sorrento Therapeutics.
Volatility and Risk
Sorrento Therapeutics has a beta of 2.93, suggesting that its stock price is 193% more volatile than the S&P 500. Comparatively, Vaxart has a beta of -0.04, suggesting that its stock price is 104% less volatile than the S&P 500.
Insider & Institutional Ownership
24.1% of Sorrento Therapeutics shares are owned by institutional investors. Comparatively, 17.9% of Vaxart shares are owned by institutional investors. 3.4% of Sorrento Therapeutics shares are owned by company insiders. Comparatively, 36.7% of Vaxart shares are owned 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.
Profitability
This table compares Sorrento Therapeutics and Vaxart's 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% |
| Vaxart | -281.50% | -84.90% | -44.67% |
Earnings & Valuation
This table compares Sorrento Therapeutics and Vaxart's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Sorrento Therapeutics | $31.43 million | 74.19 | $-292,070,000.00 | ($2.12) | -4.54 |
| Vaxart | $9.86 million | 81.96 | $-18,650,000.00 | ($0.86) | -8.60 |
Vaxart has lower revenue, but higher earnings than Sorrento Therapeutics. Vaxart 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
Vaxart beats Sorrento Therapeutics on 7 of the 13 factors compared between the two stocks.
