Luna Innovations (NASDAQ: LUNA) and Sorrento Therapeutics (NASDAQ:SRNE) are both small-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.
Earnings and Valuation
This table compares Luna Innovations and Sorrento Therapeutics’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Luna Innovations||$46.23 million||1.96||$14.61 million||N/A||N/A|
|Sorrento Therapeutics||$151.85 million||3.52||$9.13 million||($1.14)||-5.15|
This is a breakdown of current ratings for Luna Innovations and Sorrento Therapeutics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Luna Innovations currently has a consensus price target of $3.25, indicating a potential upside of 0.00%. Sorrento Therapeutics has a consensus price target of $15.33, indicating a potential upside of 161.22%. Given Sorrento Therapeutics’ higher probable upside, analysts clearly believe Sorrento Therapeutics is more favorable than Luna Innovations.
Institutional and Insider Ownership
18.2% of Luna Innovations shares are owned by institutional investors. Comparatively, 11.1% of Sorrento Therapeutics shares are owned by institutional investors. 13.0% of Luna Innovations shares are owned by insiders. Comparatively, 5.0% of Sorrento Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Luna Innovations and Sorrento Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Luna Innovations has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Sorrento Therapeutics has a beta of 2.43, meaning that its share price is 143% more volatile than the S&P 500.
Sorrento Therapeutics beats Luna Innovations on 8 of the 11 factors compared between the two stocks.
About Luna Innovations
Luna Innovations Incorporated develops, manufactures and markets fiber optic sensing and test, and measurement products. The Company is focused on bringing technology solutions to measure and monitor processes in the aerospace, automotive, energy, composite, telecommunications and defense industries. The Company operates in two business segments: Products and Licensing, and Technology Development. The Products and Licensing segment develops, manufactures and markets its suite of products, including high-speed optical receiver (HSOR), custom optoelectronic subsystems (Optoelectronics), and Terahertz (THz) products, and fiber optic sensing, as well as test and measurement products. The Technology Development segment performs applied research principally in the areas of sensing and instrumentation, advanced materials and health sciences. The Company’s HSOR transmission products are deployed in the Internet communications equipment infrastructure for high-speed bandwidth.
About Sorrento Therapeutics
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. It develops therapeutic products for the treatment of auto-immune, inflammatory, neurodegenerative, and infectious diseases. The company offers resiniferatoxin, a non-opioid-based TRPV1 agonist neurotoxin for the treatment of intractable pain at end-stage disease. Its preclinical human therapeutic antibodies include antibody drug conjugates, bispecific approaches, and T-Cell Receptor, as well as Chimeric Antigen Receptor-T Cell (CAR-T) for adoptive cellular immunotherapy for the treatment of solid and liquid tumors. It is also involved in the development of T-007, an anti-CD38 CAR-T cellular therapy for the treatment of multiple myeloma, as well as for additional potential indications, such as amyloidosis and graft-versus-host disease; and T-009, an anti-CD123 CAR-T cellular therapy for the treatment of acute myelogenous leukemia. The company has license and collaboration agreement with Les Laboratoires Servier for the development, manufacture, and commercialization of products using its human immuno-oncology anti-PD-1 mAb STI-A1110. Sorrento Therapeutics, Inc. was founded in 2006 and is based in San Diego, California.
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