AVITA MED LTD/S (NASDAQ:RCEL) & Sutro Biopharma (NASDAQ:STRO) Critical Comparison

Sutro Biopharma (NASDAQ:STRO) and AVITA MED LTD/S (NASDAQ:RCEL) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Analyst Recommendations

This is a breakdown of current recommendations for Sutro Biopharma and AVITA MED LTD/S, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sutro Biopharma 0 0 6 0 3.00
AVITA MED LTD/S 0 0 1 0 3.00

Sutro Biopharma presently has a consensus price target of $19.40, suggesting a potential upside of 72.44%. AVITA MED LTD/S has a consensus price target of $12.00, suggesting a potential upside of 42.01%. Given Sutro Biopharma’s higher probable upside, analysts plainly believe Sutro Biopharma is more favorable than AVITA MED LTD/S.

Institutional & Insider Ownership

51.1% of Sutro Biopharma shares are held by institutional investors. Comparatively, 0.0% of AVITA MED LTD/S shares are held by institutional investors. 28.9% of Sutro Biopharma shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Sutro Biopharma and AVITA MED LTD/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sutro Biopharma -84.03% N/A -21.60%
AVITA MED LTD/S N/A N/A N/A

Volatility and Risk

Sutro Biopharma has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, AVITA MED LTD/S has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.

Valuation & Earnings

This table compares Sutro Biopharma and AVITA MED LTD/S’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sutro Biopharma $38.42 million 6.76 -$35.32 million ($6.13) -1.84
AVITA MED LTD/S $5.51 million 126.71 -$24.75 million ($0.39) -21.67

AVITA MED LTD/S has lower revenue, but higher earnings than Sutro Biopharma. AVITA MED LTD/S is trading at a lower price-to-earnings ratio than Sutro Biopharma, indicating that it is currently the more affordable of the two stocks.

Sutro Biopharma Company Profile

Sutro Biopharma, Inc. operates as clinical stage drug discovery, development, and manufacturing company. It focuses on creating protein therapeutics for cancer and autoimmune disorders through integrated cell-free protein synthesis platform, XpressCF. The company's product candidates include STRO-001, an antibody-drug conjugate (ADC) directed against the cancer target CD74 for multiple myeloma and non-Hodgkin lymphoma; and STRO-002, an ADC directed against folate receptor-alpha for patients with ovarian and endometrial cancers. It has collaboration and license agreement with Celgene Corporation to discover and develop bispecific antibodies and/or ADCs focused primarily on the field of immuno-oncology. The company was formerly known as Fundamental Applied Biology, Inc. Sutro Biopharma, Inc. was incorporated in 2003 and is headquartered in South San Francisco, California.

AVITA MED LTD/S Company Profile

Avita Medical Limited operates as a regenerative medicine company in the Asia Pacific, Europe, the Middle East, Africa, and the Americas. It offers regenerative products to address unmet medical needs in burn injuries, trauma injuries, chronic wounds, and dermatological and aesthetics indications. The company's patented and proprietary platform technology provides treatment solutions derived from the regenerative properties of a patient's own skin. Its lead product is RECELL System, a device that enables healthcare professionals to produce a suspension of Spray-On Skin cells using a small sample of the patient's own skin for use in the treatment of acute thermal burns in patients 18 years and older. The company is based in Valencia, California.

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