Contrasting Sorrento Therapeutics (NASDAQ:SRNE) and Vir Biotechnology (NASDAQ:VIR)

Vir Biotechnology (NASDAQ:VIR) and Sorrento Therapeutics (NASDAQ:SRNE) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

65.3% of Vir Biotechnology shares are owned by institutional investors. Comparatively, 0.0% of Sorrento Therapeutics shares are owned by institutional investors. 15.6% of Vir Biotechnology shares are owned by company insiders. Comparatively, 2.6% of Sorrento Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Vir Biotechnology and Sorrento Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vir Biotechnology	0	1	5	0	2.83
Sorrento Therapeutics	0	0	0	0	0.00

Vir Biotechnology presently has a consensus target price of $34.83, suggesting a potential upside of 234.94%. Given Vir Biotechnology’s stronger consensus rating and higher possible upside, research analysts clearly believe Vir Biotechnology is more favorable than Sorrento Therapeutics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vir Biotechnology	-678.40%	-36.71%	-31.00%
Sorrento Therapeutics	N/A	N/A	N/A

Volatility & Risk

Vir Biotechnology has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Sorrento Therapeutics has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.

Valuation & Earnings

This table compares Vir Biotechnology and Sorrento Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vir Biotechnology	$86.18 million	16.62	-$615.06 million	($3.92)	-2.65
Sorrento Therapeutics	$62.84 million	0.00	-$572.84 million	N/A	N/A

Sorrento Therapeutics has lower revenue, but higher earnings than Vir Biotechnology.

Summary

Vir Biotechnology beats Sorrento Therapeutics on 7 of the 12 factors compared between the two stocks.

About Vir Biotechnology

Vir Biotechnology, Inc., an immunology company, develops therapeutic products to treat and prevent serious infectious diseases. Its clinical development pipeline consists of product candidates targeting hepatitis delta virus (HDV), hepatitis B virus (HBV), and human immunodeficiency virus (HIV). The company’s preclinical candidates include those targeting influenza A and B, coronavirus disease 2019, respiratory syncytial virus (RSV) and human metapneumovirus (MPV), and human papillomavirus (HPV). The company has grant agreements with Bill & Melinda Gates Foundation and National Institutes of Health; an option and license agreement with Brii Biosciences Limited; a collaboration and license agreement with Alnylam Pharmaceuticals, Inc.; license agreements with MedImmune, LLC; collaboration with WuXi Biologics (Hong Kong) Limited and Glaxo Wellcome UK Ltd.; and a collaborative research agreement with GlaxoSmithKline Biologicals S.A, as well as license agreement with Sanofi for three clinical-stage masked T-cell engagers (TCEs) and exclusive use of the protease-cleavable masking platform for oncology and infectious diseases. It also has a manufacturing agreement with Samsung Biologics Co.,Ltd. The company was incorporated in 2016 and is headquartered in San Francisco, California.

About Sorrento Therapeutics

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.