Geron Corporation (NASDAQ: GERN) and Sangamo Therapeutics (NASDAQ:SGMO) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.
Insider & Institutional Ownership
39.4% of Geron Corporation shares are owned by institutional investors. Comparatively, 63.3% of Sangamo Therapeutics shares are owned by institutional investors. 7.1% of Geron Corporation shares are owned by insiders. Comparatively, 5.5% of Sangamo Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Geron Corporation has a beta of 2.63, suggesting that its stock price is 163% more volatile than the S&P 500. Comparatively, Sangamo Therapeutics has a beta of 3.06, suggesting that its stock price is 206% more volatile than the S&P 500.
This is a breakdown of recent recommendations for Geron Corporation and Sangamo Therapeutics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Geron Corporation presently has a consensus price target of $4.17, indicating a potential upside of 107.30%. Sangamo Therapeutics has a consensus price target of $18.60, indicating a potential upside of 26.10%. Given Geron Corporation’s higher possible upside, equities research analysts plainly believe Geron Corporation is more favorable than Sangamo Therapeutics.
This table compares Geron Corporation and Sangamo Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Geron Corporation and Sangamo Therapeutics’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Geron Corporation||$6.16 million||51.96||-$29.53 million||($0.18)||-11.17|
|Sangamo Therapeutics||$19.39 million||64.29||-$71.65 million||($0.69)||-21.38|
Geron Corporation has higher revenue, but lower earnings than Sangamo Therapeutics. Sangamo Therapeutics is trading at a lower price-to-earnings ratio than Geron Corporation, indicating that it is currently the more affordable of the two stocks.
Sangamo Therapeutics beats Geron Corporation on 7 of the 13 factors compared between the two stocks.
Geron Corporation Company Profile
Geron Corporation (Geron) is a biopharmaceutical company, which supports the clinical stage development of a telomerase inhibitor, Imetelstat, in hematologic myeloid malignancies by Janssen Biotech, Inc. (Janssen). The Company is engaged in the development of therapeutic products for oncology. Using its nucleic acid chemistry, Geron designed Imetelstat to be an oligonucleotide that binds with high affinity to the ribonucleic acid (RNA) template of telomerase, thereby directly inhibiting telomerase activity. Janssen is engaged in the development of Imetelstat with two clinical trials, such as a Phase II trial in myelofibrosis (MF), referred to as IMbark, and a Phase II/III trial in myelodysplastic syndromes (MDS) referred to as IMerge. Imetelstat is a lipid conjugated 13-mer oligonucleotide that is designed to be complementary to and bind with high affinity to the RNA template of telomerase, thereby directly inhibiting telomerase activity.
Sangamo Therapeutics Company Profile
Sangamo Therapeutics, Inc., formerly Sangamo BioSciences, Inc., is a clinical-stage biotechnology company. The Company is focused on translating science into genomic therapies that transform patients’ lives using the Company’s platform technologies in genome editing, gene therapy, gene regulation and cell therapy. The Company has clinical and preclinical programs in development and partnered certain programs with biopharmaceutical companies to expedite clinical and commercial development. The focus for its Company is the development of human therapeutics. The Company’s product pipeline includes SB-525, SB-FIX, SB-318, SB-913, SB-728-T and SB-728-HSPC. The Company has initiated a Phase I/II clinical trial evaluating its zinc finger nuclease (ZFN) in vivo genome editing approach for the treatment of hemophilia B. In the development of its ZFP technology platform, it is focusing its resources on product development for therapeutic use in humans and on its non-therapeutic applications.
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