Sorrento Therapeutics (NASDAQ: SRNE) and Luna Innovations (NASDAQ:LUNA) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.
Risk and Volatility
Sorrento Therapeutics has a beta of 2.43, indicating that its share price is 143% more volatile than the S&P 500. Comparatively, Luna Innovations has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.
This table compares Sorrento Therapeutics and Luna Innovations’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
11.1% of Sorrento Therapeutics shares are owned by institutional investors. Comparatively, 18.2% of Luna Innovations shares are owned by institutional investors. 5.0% of Sorrento Therapeutics shares are owned by insiders. Comparatively, 13.0% of Luna Innovations shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations for Sorrento Therapeutics and Luna Innovations, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sorrento Therapeutics presently has a consensus price target of $15.33, indicating a potential upside of 162.11%. Luna Innovations has a consensus price target of $3.25, indicating a potential upside of 0.62%. Given Sorrento Therapeutics’ higher probable upside, research analysts clearly believe Sorrento Therapeutics is more favorable than Luna Innovations.
Valuation & Earnings
This table compares Sorrento Therapeutics and Luna Innovations’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sorrento Therapeutics||$151.85 million||3.51||$9.13 million||($1.14)||-5.13|
|Luna Innovations||$46.23 million||1.95||$14.61 million||N/A||N/A|
Luna Innovations has lower revenue, but higher earnings than Sorrento Therapeutics.
Sorrento Therapeutics beats Luna Innovations on 8 of the 11 factors compared between the two stocks.
Sorrento Therapeutics Company Profile
Sorrento Therapeutics, Inc., a clinical stage biotechnology company, primarily engages in the discovery and development of therapies focused on oncology and the treatment of chronic cancer pain worldwide. It develops therapeutic products for the treatment of auto-immune, inflammatory, neurodegenerative, and infectious diseases. The company offers resiniferatoxin, a non-opioid-based TRPV1 agonist neurotoxin for the treatment of intractable pain at end-stage disease. Its preclinical human therapeutic antibodies include antibody drug conjugates, bispecific approaches, and T-Cell Receptor, as well as Chimeric Antigen Receptor-T Cell (CAR-T) for adoptive cellular immunotherapy for the treatment of solid and liquid tumors. It is also involved in the development of T-007, an anti-CD38 CAR-T cellular therapy for the treatment of multiple myeloma, as well as for additional potential indications, such as amyloidosis and graft-versus-host disease; and T-009, an anti-CD123 CAR-T cellular therapy for the treatment of acute myelogenous leukemia. The company has license and collaboration agreement with Les Laboratoires Servier for the development, manufacture, and commercialization of products using its human immuno-oncology anti-PD-1 mAb STI-A1110. Sorrento Therapeutics, Inc. was founded in 2006 and is based in San Diego, California.
Luna Innovations Company Profile
Luna Innovations Incorporated develops, manufactures and markets fiber optic sensing and test, and measurement products. The Company is focused on bringing technology solutions to measure and monitor processes in the aerospace, automotive, energy, composite, telecommunications and defense industries. The Company operates in two business segments: Products and Licensing, and Technology Development. The Products and Licensing segment develops, manufactures and markets its suite of products, including high-speed optical receiver (HSOR), custom optoelectronic subsystems (Optoelectronics), and Terahertz (THz) products, and fiber optic sensing, as well as test and measurement products. The Technology Development segment performs applied research principally in the areas of sensing and instrumentation, advanced materials and health sciences. The Company’s HSOR transmission products are deployed in the Internet communications equipment infrastructure for high-speed bandwidth.
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