Sorrento Therapeutics (NASDAQ:SRNE) versus Relay Therapeutics (NASDAQ:RLAY) Financial Contrast

Sorrento Therapeutics (NASDAQ:SRNEGet Free Report) and Relay Therapeutics (NASDAQ:RLAYGet Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Institutional and Insider Ownership

0.0% of Sorrento Therapeutics shares are held by institutional investors. Comparatively, 97.0% of Relay Therapeutics shares are held by institutional investors. 2.6% of Sorrento Therapeutics shares are held by company insiders. Comparatively, 4.3% of Relay Therapeutics shares are held by company 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.

Valuation & Earnings

This table compares Sorrento Therapeutics and Relay Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sorrento Therapeutics $60.32 million 0.10 -$572.84 million N/A N/A
Relay Therapeutics $25.55 million 35.85 -$341.97 million ($2.64) -2.61

Relay Therapeutics has lower revenue, but higher earnings than Sorrento Therapeutics.

Volatility and Risk

Sorrento Therapeutics has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500. Comparatively, Relay Therapeutics has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Sorrento Therapeutics N/A N/A N/A
Relay Therapeutics -1,263.49% -42.66% -37.04%

Analyst Ratings

This is a summary of current ratings and price targets for Sorrento Therapeutics and Relay Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sorrento Therapeutics 0 0 0 0 N/A
Relay Therapeutics 0 0 7 0 3.00

Relay Therapeutics has a consensus price target of $22.80, suggesting a potential upside of 230.43%. Given Relay Therapeutics’ higher probable upside, analysts plainly believe Relay Therapeutics is more favorable than Sorrento Therapeutics.

Summary

Relay Therapeutics beats Sorrento Therapeutics on 6 of the 11 factors compared between the two stocks.

About Sorrento Therapeutics

(Get Free Report)

Sorrento Therapeutics, Inc., a clinical and commercial stage biopharmaceutical company, develops a portfolio of next-generation treatments for three therapeutic areas: cancer, infectious disease,and pain. It operates through two segments, Sorrento Therapeutics and Scilex. The company provides cancer therapeutic by leveraging its proprietary G-MAB antibody library and targeted delivery modalities, which include chimeric antigen receptor T-cell therapy (CAR-T), dimeric antigen receptor T-cell therapy, and antibody drug conjugate, as well as bispecific antibody approach; and Sofusa, a drug delivery technology that deliver biologic directly into the lymphatic system. Its clinical programs in development include anti-CD38 CAR-T therapy for the treatment of multiple myeloma, as well as for amyloidosis and graft versus host disease. The company develops resiniferatoxin, a non-opioid-based TRPV1 agonist neurotoxin for late stage cancer and osteoarthritis pain treatment; and ZTlido, a lidocaine topical system for the treatment of post-herpetic neuralgia. It engages in the development of SEMDEXA, an injectable viscous gel formulation, which is Phase III trial for the treatment of sciatica, a pathology of low back pain; SP-103, an investigational non-aqueous lidocaine topical system undergoing clinical development in chronic low back pain condition; and SP-104, a novel low-dose delayed-release naltrexone hydrochloride formulation for the treatment of fibromyalgia. It has collaboration with SmartPharm Therapeutics Inc. to develop gene-encoded antibody vaccine to protect against COVID-19; and Mayo Clinic for Phase Ib pilot study using sofusa lymphatic drug delivery technology to deliver Ipilimumab in patient with melanoma. The company was founded in 2006 and is based in San Diego, California. On February 13, 2023, Sorrento Therapeutics, Inc., along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. The plan was later approved as Chapter 11 liquidation on November 30, 2023.

About Relay Therapeutics

(Get Free Report)

Relay Therapeutics, Inc. operates as a clinical-stage precision medicines company. It engages in transforming the drug discovery process with an initial focus on enhancing small molecule therapeutic discovery in targeted oncology and genetic disease indications. The company's lead product candidates include RLY-4008, an oral small molecule inhibitor of fibroblast growth factor receptor 2 (FGFR2), which is in a first-in-human clinical trial for patients with advanced or metastatic FGFR2-altered solid tumors; RLY-2608, a lead mutant-PI3Ka inhibitor program that targets phosphoinostide 3 kinase alpha; and Migoprotafib (GDC-1971), an oral, small molecule, potent and selective inhibitor of the protein tyrosine phosphatase SHP2 that binds and stabilizes Src homology region 2 domain-containing phosphatase-2 (SHP2) as a monotherapy in patients with advanced or metastatic solid tumors. In addition, it has collaboration and license agreements with D. E. Shaw Research, LLC to research certain biological targets through the use of D. E. Shaw Research computational modeling capabilities focused on analysis of protein motion to develop and commercialize compounds and products directed to such targets; and Genentech, Inc. for the development and commercialization of GDC-1971. The company was formerly known as Allostery, Inc. and changed its name to Relay Therapeutics, Inc. in December 2015. Relay Therapeutics, Inc. was incorporated in 2015 and is headquartered in Cambridge, Massachusetts.

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