Contrasting Surface Oncology (SURF) and Sangamo Therapeutics (SGMO)

Sangamo Therapeutics (NASDAQ:SGMO) and Surface Oncology (NASDAQ:SURF) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Institutional and Insider Ownership

65.9% of Sangamo Therapeutics shares are owned by institutional investors. Comparatively, 61.2% of Surface Oncology shares are owned by institutional investors. 1.2% of Sangamo Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Sangamo Therapeutics and Surface Oncology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sangamo Therapeutics -88.78% -22.06% -13.93%
Surface Oncology N/A -5.33% -1.28%

Valuation & Earnings

This table compares Sangamo Therapeutics and Surface Oncology’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sangamo Therapeutics $36.57 million 31.04 -$54.56 million ($0.70) -15.89
Surface Oncology $6.63 million 35.03 N/A N/A N/A

Surface Oncology has lower revenue, but higher earnings than Sangamo Therapeutics.

Analyst Ratings

This is a breakdown of current ratings and price targets for Sangamo Therapeutics and Surface Oncology, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sangamo Therapeutics 0 3 5 0 2.63
Surface Oncology 0 1 3 0 2.75

Sangamo Therapeutics presently has a consensus target price of $19.83, indicating a potential upside of 78.36%. Surface Oncology has a consensus target price of $22.00, indicating a potential upside of 162.22%. Given Surface Oncology’s stronger consensus rating and higher probable upside, analysts clearly believe Surface Oncology is more favorable than Sangamo Therapeutics.

Summary

Surface Oncology beats Sangamo Therapeutics on 6 of the 10 factors compared between the two stocks.

Sangamo Therapeutics Company Profile

Sangamo Therapeutics, Inc. focuses on translating science into genomic therapies that transform patients' lives using platform technologies in genome editing, gene therapy, gene regulation, and cell therapy. The company's zinc finger DNA-binding protein (ZFP) technology enables specific genome editing and gene regulation. The ZFPs could be engineered to make ZFP nucleases (ZFNs), proteins that could be used to modify DNA sequences by adding or knocking out specific genes; and ZFP transcription factors (ZFP TFs), proteins that can be used to turn genes on or off. Its therapeutic products include SB-728-T, a ZFN-mediated autologous T-cell product for human immunodeficiency virus and acquired immunodeficiency syndrome (HIV/AIDS), which is in Phase II and I clinical trials; and SB-728-HSPC that is in Phase I/II clinical trials for HIV/AIDS. The company also engages in Phase I/II studies of in vivo genome editing applications of ZFP Therapeutics for Hemophilia B, Hemophilia A, and Mucopolysaccharidosis I (MPS) and MPS II, which are lysosomal storage disorder (LSD); preclinical programs in other LSDs; and research stage programs in central nervous system disorders and cancer immunotherapies. It has collaborative partnerships with Biogen Inc. to develop therapeutic genome editing products in hemoglobinopathies; and Shire International GmbH to develop preclinical development program in Huntington's disease, as well as license agreements with Sigma-Aldrich Corporation to develop laboratory research reagents and Dow AgroSciences, LLC to modify the protein expression of plant cells and plants. The company also has a research collaboration and license agreement with Pfizer Inc; and collaboration with Kite for developing ex vivo cell therapies in oncology. The company was formerly known as Sangamo BioSciences, Inc. and changed its name to Sangamo Therapeutics, Inc. in January 2017. Sangamo Therapeutics, Inc. was founded in 1995 and is headquartered in Richmond, California.

Surface Oncology Company Profile

Surface Oncology, Inc., a clinical-stage immuno-oncology company, engages in the development of cancer therapies. The company's lead product candidate is the SRF231 that is in Phase I clinical trial targeting protein called cluster of differentiation (CD) 47. It is also developing SRF373 inhibiting CD73; SRF617 inhibiting CD39; and SRF388, an antibody targeting interleukin 27. The company has a collaboration agreement with Novartis Institutes for Biomedical Research, Inc. for the development of cancer therapies. Surface Oncology, Inc. was founded in 2014 and is headquartered in Cambridge, Massachusetts.

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