Sorrento Therapeutics (NASDAQ: SRNE) and Epizyme (NASDAQ:EPZM) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.
This table compares Sorrento Therapeutics and Epizyme’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Sorrento Therapeutics and Epizyme’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sorrento Therapeutics||$15.80 million||10.91||-$69.49 million||($1.50)||-1.67|
|Epizyme||$17.06 million||61.52||-$120.12 million||($2.06)||-8.71|
Sorrento Therapeutics has higher revenue, but lower earnings than Epizyme. Epizyme is trading at a lower price-to-earnings ratio than Sorrento Therapeutics, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Sorrento Therapeutics has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, Epizyme has a beta of 2.22, indicating that its share price is 122% more volatile than the S&P 500.
This is a breakdown of recent recommendations for Sorrento Therapeutics and Epizyme, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sorrento Therapeutics currently has a consensus price target of $12.60, indicating a potential upside of 404.00%. Epizyme has a consensus price target of $24.25, indicating a potential upside of 35.10%. Given Sorrento Therapeutics’ higher probable upside, equities analysts plainly believe Sorrento Therapeutics is more favorable than Epizyme.
Institutional and Insider Ownership
16.3% of Sorrento Therapeutics shares are held by institutional investors. Comparatively, 72.2% of Epizyme shares are held by institutional investors. 5.0% of Sorrento Therapeutics shares are held by insiders. Comparatively, 25.2% of Epizyme shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Epizyme beats Sorrento Therapeutics on 8 of the 12 factors compared between the two stocks.
Sorrento Therapeutics Company Profile
Sorrento Therapeutics, Inc. is a biopharmaceutical company. The Company is engaged in the discovery, acquisition, development and commercialization of drug therapeutics. Its primary therapeutic focus is oncology, including the treatment of chronic cancer pain. It is also developing therapeutic products for other indications, including immunology and infectious diseases. Its products in the pipeline include Chimeric Antigen Receptor-T Cell (CAR-T) programs, resiniferatoxin (RTX), and biosimilar/biobetter antibodies clinical development programs. Its pipeline also includes preclinical fully human therapeutic monoclonal antibodies (mAbs), including biosimilars/biobetters, fully human anti-PD-L1 and anti-PD-1 checkpoint inhibitors derived from its G-MAB library platform, antibody drug conjugates (ADCs), bispecific antibodies (BsAbs), as well as CAR-T and Chimeric Antigen Receptor Natural Killer (NK) cells (CAR. NK) for adoptive cellular immunotherapy.
Epizyme Company Profile
Epizyme, Inc. is a clinical-stage biopharmaceutical company. The Company discovers, develops and plans to commercialize epigenetic therapies for cancer patients. The Company is engaged in the discovery and development of novel epigenetic therapies for cancer patients. The Company develops small molecule inhibitors of a class of enzymes known as histone methyltransferases (HMTs). The Company develops small molecule inhibitors of other chromatin modifying proteins (CMPs). The Company’s lead product candidate, tazemetostat, is a potent and selective inhibitor of the enhancer of zeste homolog 2 (EZH2) histone methyltransferases (HMT), an enzyme that plays an important role in various cancers. The Company is evaluating tazemetostat in a Phase II study in adults with relapsed or refractory non-Hodgkin lymphoma (NHL), and one Phase I study in children with molecularly defined solid tumors. The Company owns the global development and commercialization rights to tazemetostat outside of Japan.
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