Critical Contrast: Sorrento Therapeutics (SRNE) and Exelixis (EXEL)

Sorrento Therapeutics (NASDAQ: SRNE) and Exelixis (NASDAQ:EXEL) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Valuation & Earnings

This table compares Sorrento Therapeutics and Exelixis’ top-line 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 4.49 $9.13 million N/A N/A
Exelixis $452.48 million 12.73 $154.22 million $0.51 38.04

Exelixis has higher revenue and earnings than Sorrento Therapeutics.

Institutional and Insider Ownership

25.0% of Sorrento Therapeutics shares are owned by institutional investors. Comparatively, 77.8% of Exelixis shares are owned by institutional investors. 5.0% of Sorrento Therapeutics shares are owned by insiders. Comparatively, 4.8% of Exelixis shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Sorrento Therapeutics and Exelixis, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sorrento Therapeutics 0 0 5 0 3.00
Exelixis 0 3 9 0 2.75

Sorrento Therapeutics presently has a consensus price target of $15.75, suggesting a potential upside of 114.29%. Exelixis has a consensus price target of $33.56, suggesting a potential upside of 72.97%. Given Sorrento Therapeutics’ stronger consensus rating and higher possible upside, equities analysts plainly believe Sorrento Therapeutics is more favorable than Exelixis.

Risk & Volatility

Sorrento Therapeutics has a beta of 2.46, meaning that its stock price is 146% more volatile than the S&P 500. Comparatively, Exelixis has a beta of 2.12, meaning that its stock price is 112% more volatile than the S&P 500.

Profitability

This table compares Sorrento Therapeutics and Exelixis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sorrento Therapeutics 23.25% 21.31% 8.09%
Exelixis 43.39% 77.39% 40.62%

Summary

Exelixis beats Sorrento Therapeutics on 8 of the 12 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. 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.

Exelixis Company Profile

Exelixis, Inc., a biotechnology company, engages in the discovery, development, and commercialization of new medicines to enhance care and outcomes for people with cancer. The company's products include CABOMETYX tablets for the treatment of patients with advanced renal cell carcinoma who received prior anti-angiogenic therapy; and COMETRIQ capsules for the treatment of patients with progressive and metastatic medullary thyroid cancer. Its CABOMETYX and COMETRIQ are derived from cabozantinib, an inhibitor of multiple tyrosine kinases, including MET, AXL, RET, and VEGF receptors. It also offers COTELLIC tablets, an inhibitor of MEK in combination with vemurafenib for the treatment of patients with BRAF V600E or V600K mutation-positive advanced melanoma in the United States; and in combination with vemurafenib in other territories, including the European Union, Switzerland, Canada, Australia, and Brazil. Exelixis, Inc. has collaboration and license agreement with Ipsen Pharma SAS, Genentech, Inc., GlaxoSmithKline, Bristol-Myers Squibb Company, Sanofi, Merck, Daiichi Sankyo Company Limited, and Invenra, Inc. The company was formerly known as Exelixis Pharmaceuticals, Inc. and changed its name to Exelixis, Inc. in February 2000. Exelixis, Inc. was founded in 1994 and is headquartered in South San Francisco, California.

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