Analyzing Sana Biotechnology (NASDAQ:SANA) & Sorrento Therapeutics (NASDAQ:SRNE)

Sana Biotechnology (NASDAQ:SANA – Get Rating) and Sorrento Therapeutics (NASDAQ:SRNE – Get Rating) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Sana Biotechnology and Sorrento Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sana Biotechnology	0	2	1	0	2.33
Sorrento Therapeutics	0	1	1	0	2.50

Sana Biotechnology presently has a consensus price target of $10.00, indicating a potential upside of 60.26%. Sorrento Therapeutics has a consensus price target of $5.00, indicating a potential upside of 1,550.17%. Given Sorrento Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Sorrento Therapeutics is more favorable than Sana Biotechnology.

Volatility and Risk

Sana Biotechnology has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Sorrento Therapeutics has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500.

Earnings and Valuation

This table compares Sana Biotechnology and Sorrento Therapeutics’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sana Biotechnology	N/A	N/A	-$269.48 million	($1.69)	-3.69
Sorrento Therapeutics	$60.32 million	2.37	-$428.33 million	N/A	N/A

Sana Biotechnology has higher earnings, but lower revenue than Sorrento Therapeutics.

Profitability

This table compares Sana Biotechnology and Sorrento Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sana Biotechnology	N/A	-63.06%	-39.12%
Sorrento Therapeutics	-818.22%	-282.82%	-57.64%

Institutional and Insider Ownership

67.1% of Sana Biotechnology shares are held by institutional investors. Comparatively, 34.5% of Sorrento Therapeutics shares are held by institutional investors. 35.4% of Sana Biotechnology shares are held by company insiders. Comparatively, 2.6% of Sorrento Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Sana Biotechnology beats Sorrento Therapeutics on 6 of the 10 factors compared between the two stocks.

About Sana Biotechnology

(Get Rating)

Sana Biotechnology, Inc., a biotechnology company, focuses on utilizing engineered cells as medicines. The company develops ex vivo and in vivo cell engineering platforms for various therapeutic areas with unmet treatment needs, including oncology, diabetes, central nervous system disorders, cardiovascular diseases, genetic disorders, and others. Its product candidates include SG295 and SG242 that target CD19+ cancer cells, including non-Hodgkin Lymphoma, chronic lymphocytic leukemia, and acute lymphoblastic leukemia; SG221 and SG239 for the treatment of multiple myeloma; and SG328 for ornithine transcarbamylase deficiency. It also develops SG418 for sickle cell disease and beta-thalassemia; SC291, a CD19 allogeneic T cell therapy; SC255 for multiple myeloma; SC451 for type I diabetes mellitus; and SC379 for secondary progressive multiple sclerosis, Pelizaeus-Merzbacher disease, and Huntington's disease. Sana Biotechnology, Inc. was formerly known as FD Therapeutics, Inc. and changed its name to Sana Biotechnology, Inc. in September 2018. The company was incorporated in 2018 and is headquartered in Seattle, Washington.

About Sorrento Therapeutics

(Get Rating)

Sorrento Therapeutics, Inc. engages in the research, development and manufacture of biopharmaceutical products. It focuses on therapies to treat specific stages in the evolution of cancer, from elimination, to equilibrium and escape which include biosimilars, immuno-oncology antibodies, cellular therapy, cell internalizing antibodies, and antibody drug conjugates. It operates through the Sorrento Therapeutics and Scilex segments. The company was founded by Henry H. Ji in 1989 and is headquartered in San Diego, CA.