Contrasting Surrozen (NASDAQ:SRZN) & Fractyl Health (NASDAQ:GUTS)

Surrozen (NASDAQ:SRZN) and Fractyl Health (NASDAQ:GUTS) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Earnings & Valuation

This table compares Surrozen and Fractyl Health”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surrozen	$10.65 million	18.48	-$63.56 million	($22.34)	-1.03
Fractyl Health	$90,000.00	3,441.23	-$68.69 million	($2.29)	-0.99

Surrozen has higher revenue and earnings than Fractyl Health. Surrozen is trading at a lower price-to-earnings ratio than Fractyl Health, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Surrozen and Fractyl Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Surrozen	-2,909.10%	-4,055.04%	-88.90%
Fractyl Health	N/A	-2,896.77%	-105.72%

Institutional and Insider Ownership

66.6% of Surrozen shares are held by institutional investors. 43.5% of Surrozen shares are held by insiders. Comparatively, 26.1% of Fractyl Health shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Surrozen has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Fractyl Health has a beta of 1.96, meaning that its stock price is 96% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Surrozen and Fractyl Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surrozen	1	0	2	1	2.75
Fractyl Health	1	0	4	0	2.60

Surrozen currently has a consensus target price of $38.50, suggesting a potential upside of 67.68%. Fractyl Health has a consensus target price of $7.40, suggesting a potential upside of 227.43%. Given Fractyl Health’s higher probable upside, analysts plainly believe Fractyl Health is more favorable than Surrozen.

Summary

Fractyl Health beats Surrozen on 8 of the 15 factors compared between the two stocks.

About Surrozen

Surrozen, Inc., a clinical stage biotechnology company, discovers and develops drug candidates to selectively modulate the Wnt pathway for tissue repair. The company is developing antibody-based therapeutics which targets various disease areas, including diseases of the intestine, liver, retina, cornea, lung, kidney, cochlea, skin, pancreas, and central nervous system. Its products in pipeline include SZN-043, a hepatocyte-specific R-spondin mimetic bispecific fusion protein, which is in Phase 1b clinical trial for the treatment of severe liver diseases, including alcohol-associated hepatitis. The company develops SZN-413, a Fzd4 targeted bi-specific antibody for the treatment of retinal vascular associated diseases. Surrozen, Inc. has collaboration and license agreement with Boehringer Ingelheim International GmbH to research, develop, and commercialize Fzd4 bi-specific antibodies. Surrozen, Inc. is based in South San Francisco, California.

About Fractyl Health

Fractyl Health, Inc., a metabolic therapeutics company, develops therapies for the treatment of type 2 diabetes (T2D) and obesity. The company develops Revita DMR System (Revita), an outpatient procedural therapy designed to durably modify duodenal dysfunction, a pathologic consequence of a high fat and high sugar diet, which can initiate T2D and obesity in humans. It also develops Rejuva, a novel adeno-associated virus delivered pancreatic gene therapy platform that is designed to enable long-term remission of T2D and obesity by durably altering metabolic hormone function in the pancreatic islet cells of patients. Fractyl Health, Inc. was formerly known as Fractyl Laboratories Inc. and changed its name to Fractyl Health, Inc. on June 09, 2021. The company was incorporated in 2010 and is headquartered in Burlington, Massachusetts.