PRA Health Sciences (NASDAQ:PRAH) and Sorrento Therapeutics (NASDAQ:SRNE) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.
Institutional & Insider Ownership
98.8% of PRA Health Sciences shares are held by institutional investors. Comparatively, 24.9% of Sorrento Therapeutics shares are held by institutional investors. 0.9% of PRA Health Sciences shares are held by company insiders. Comparatively, 6.0% 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.
This table compares PRA Health Sciences and Sorrento Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|PRA Health Sciences||4.25%||24.52%||7.00%|
This is a breakdown of current recommendations for PRA Health Sciences and Sorrento Therapeutics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|PRA Health Sciences||0||2||7||0||2.78|
PRA Health Sciences currently has a consensus price target of $111.11, suggesting a potential upside of 10.03%. Sorrento Therapeutics has a consensus price target of $21.08, suggesting a potential upside of 523.77%. Given Sorrento Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Sorrento Therapeutics is more favorable than PRA Health Sciences.
Earnings and Valuation
This table compares PRA Health Sciences and Sorrento Therapeutics’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PRA Health Sciences||$2.26 billion||2.88||$86.92 million||$3.20||31.56|
|Sorrento Therapeutics||$151.86 million||2.60||$9.13 million||$0.13||26.00|
PRA Health Sciences has higher revenue and earnings than Sorrento Therapeutics. Sorrento Therapeutics is trading at a lower price-to-earnings ratio than PRA Health Sciences, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
PRA Health Sciences has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Sorrento Therapeutics has a beta of 2.19, indicating that its share price is 119% more volatile than the S&P 500.
PRA Health Sciences beats Sorrento Therapeutics on 10 of the 14 factors compared between the two stocks.
About PRA Health Sciences
PRA Health Sciences, Inc., a contract research organization, provides outsourced clinical development services to the biotechnology and pharmaceutical industries worldwide. The company operates in two segments, Clinical Research and Data Solutions. The Clinical Research segment offers product registration services, including clinical trial management, project management, regulatory affairs, therapeutic expertise, clinical operations, data and programming, safety and risk management, biostatistics and medical writing, quality assurance, and late phase services. It also provides strategic solutions, such as embedded, functional services provider, staff augmentation, and custom-built development solutions, as well as commercialization services; and early development services for Phase I and Phase IIa studies, and bioanalytical analysis. The Data Solutions segment offers data, analytics, technology, and consulting solutions to the life sciences market. Its services include targeting and compensation services, and pharmaceutical audit suite; brand analytics, managed markets, commercial effectiveness, and scientific studies/clinical hubs; and technology-enabled products and services. The company conducts clinical trials in the areas of pharmaceutical development, including oncology, central nervous system, inflammation, and infectious diseases. The company was formerly known as PRA Global Holdings, Inc. and changed its name to PRA Health Sciences, Inc. in July 2014. PRA Health Sciences, Inc. was founded in 1976 and is headquartered in Raleigh, North Carolina.
About Sorrento Therapeutics
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. The company is focusing on the development of chimeric antigen receptor (CAR)-based immunotherapies using autologous T-cells. It is developing CD38 Directed CAR-T, a cellular therapy used for the treatment of multiple myeloma, as well as for amyloidosis and graft-versus-host diseases; CD123 Directed CAR-T for the treatment of acute myelogenous leukemia; and human antibodies, including PD-1, PD-L1, CD38, CD123, CD47, c-MET, VEGFR2, CCR2, OX40, TIGIT, and CD137. The company is also developing intracellular targeting antibodies comprising STAT3, Mutant KRAS, MYC, p53, and TAU to modulate the evolution of cancer, inflammation, autoimmune diseases, diabetes, central nervous system diseases, cardiovascular diseases, and viral infections; and oncolytic viruses that infect and selectively multiply in and destroy tumor cells without damaging healthy tissue. In addition, it offers resiniferatoxin, a non-opioid-based TRPV1 agonist neurotoxin for the treatment of intractable pain treatment; and ZTlido, a lidocaine delivery system for the treatment of postherpetic neuralgia. The company has a licensing agreement with Mabtech Limited to develop and commercialize multiple prespecified biosimilar and biobetter antibodies from based on Erbitux, Remicade, Xolair, and Simulect. Sorrento Therapeutics, Inc. was founded in 2006 and is based in San Diego, California.
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