Financial Analysis: Sage Therapeutics (SAGE) vs. Rosetta Genomics (ROSG)

Sage Therapeutics (NASDAQ: SAGE) and Rosetta Genomics (NASDAQ:ROSG) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.

Profitability

This table compares Sage Therapeutics and Rosetta Genomics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sage Therapeutics N/A -64.86% -59.43%
Rosetta Genomics -175.92% -155.54% -108.98%

Insider and Institutional Ownership

6.5% of Rosetta Genomics shares are owned by institutional investors. 6.1% of Sage Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for Sage Therapeutics and Rosetta Genomics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sage Therapeutics 0 2 8 1 2.91
Rosetta Genomics 0 0 1 0 3.00

Sage Therapeutics presently has a consensus price target of $89.64, indicating a potential upside of 10.83%. Rosetta Genomics has a consensus price target of $2.16, indicating a potential upside of 30.12%. Given Rosetta Genomics’ stronger consensus rating and higher probable upside, analysts plainly believe Rosetta Genomics is more favorable than Sage Therapeutics.

Risk and Volatility

Sage Therapeutics has a beta of 2.94, meaning that its stock price is 194% more volatile than the S&P 500. Comparatively, Rosetta Genomics has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Earnings and Valuation

This table compares Sage Therapeutics and Rosetta Genomics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sage Therapeutics N/A N/A -$222.35 million ($6.05) -13.37
Rosetta Genomics $9.23 million 0.34 -$14.76 million ($11.04) -0.15

Rosetta Genomics has higher revenue and earnings than Sage Therapeutics. Sage Therapeutics is trading at a lower price-to-earnings ratio than Rosetta Genomics, indicating that it is currently the more affordable of the two stocks.

Summary

Sage Therapeutics beats Rosetta Genomics on 8 of the 13 factors compared between the two stocks.

About Sage Therapeutics

SAGE Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in developing and commercializing medicines to treat central nervous system (CNS) disorders. The Company’s lead product candidate, SAGE-547 is an intravenous formulation of allopregnanolone, a neurosteroid that acts as a synaptic and extrasynaptic modulator of the Gamma-Amino Butyric Acid-A (GABAA) receptor. The Company’s next-generation product candidates, SAGE-217 and SAGE-689, also target the GABAA receptor system. The Company is focused on developing drugs based on selective allosteric modulation of CNS synaptic and extrasynaptic receptors. The Company’s chemistry platform is focused on the chemical scaffolds of endogenous or chemically modified synthetic neuroactive steroid compounds that are allosteric modulators of GABAA or N-Methyl-D-aspartic acid or N-Methyl-D-aspartate (NMDA) receptors.

About Rosetta Genomics

Rosetta Genomics Ltd. is engaged in developing and commercializing new diagnostic tests based on various genomics markers, including deoxyribonucleic acid (DNA), micro ribonucleic acid (microRNA) and protein biomarkers and using various technologies, including, Quantitative polymerase chain reaction (qPCR), microarrays, Next Generation Sequencing (NGS) and Fluorescence In Situ Hybridization (FISH). It is marketing and selling over four diagnostic tests based on its microRNA technologies, which include RosettaGX Cancer Origin, mi-LUNG, mi-KIDNEY and RosettaGX Reveal. Its therapeutic pipeline consists of the projects, which include Rimonim Consortium and Magneton Project. It focuses on developing diagnostic assay, RosettaGX Reveal V2. It is also focusing on developing Bladder cancer risk stratification. Its PersonalizeDx is focused on the detection of genomic changes through FISH technology, which helps to detect cancer.

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