Analyzing Solid Biosciences (NASDAQ:SLDB) and Senti Biosciences (NASDAQ:SNTI)

Solid Biosciences (NASDAQ:SLDB) and Senti Biosciences (NASDAQ:SNTI) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Insider and Institutional Ownership

81.5% of Solid Biosciences shares are owned by institutional investors. Comparatively, 25.7% of Senti Biosciences shares are owned by institutional investors. 13.6% of Solid Biosciences shares are owned by insiders. Comparatively, 15.9% of Senti Biosciences shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Solid Biosciences has a beta of 1.92, suggesting that its stock price is 92% more volatile than the S&P 500. Comparatively, Senti Biosciences has a beta of 2.76, suggesting that its stock price is 176% more volatile than the S&P 500.

Valuation & Earnings

This table compares Solid Biosciences and Senti Biosciences’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solid Biosciences	$8.09 million	38.70	-$96.01 million	($3.94)	-2.06
Senti Biosciences	$255,000.00	514.97	-$71.06 million	($1.44)	-1.99

Senti Biosciences has lower revenue, but higher earnings than Solid Biosciences. Solid Biosciences is trading at a lower price-to-earnings ratio than Senti Biosciences, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Solid Biosciences and Senti Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solid Biosciences	N/A	-53.76%	-43.74%
Senti Biosciences	N/A	-84.70%	-48.10%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Solid Biosciences and Senti Biosciences, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solid Biosciences	0	0	7	2	3.22
Senti Biosciences	0	0	0	0	N/A

Solid Biosciences currently has a consensus price target of $15.67, suggesting a potential upside of 93.18%. Given Solid Biosciences’ higher probable upside, equities research analysts clearly believe Solid Biosciences is more favorable than Senti Biosciences.

Summary

Solid Biosciences beats Senti Biosciences on 7 of the 13 factors compared between the two stocks.

About Solid Biosciences

Solid Biosciences Inc., a life science company, develops therapies for neuromuscular and cardiac diseases in the United States. The company's lead product candidate is SGT-003, a gene transfer candidate for the treatment of Duchenne muscular dystrophy; and SGT-501 to treat Catecholaminergic polymorphic ventricular tachycardia. It is also developing AVB-401 for the treatment of BAG3-mediated dilated cardiomyopathy; SGT-601 to treat a rare cardiac disease characterized by mutations in the gene that codes for cardiac troponin T protein, which helps coordinate contraction of the heart muscle; SGT-701 for treatment of rare inherited disease characterized by mutations in the RBM20 gene, a cardiac splicing factor that regulates alternative splicing, and codes for RNA binding motif protein 20; and AVB-202-TT to treat Friedreich's ataxia, as well as other drugs for the treatment of cardiac and other diseases. In addition, the company is involved in developing platform technologies, including capsid libraries and dual gene expression, a technology for packaging multiple transgenes into one capsid. The company has collaboration and license agreement with Ultragenyx Pharmaceutical Inc. to develop and commercialize new gene therapies for Duchenne; and a license agreement with the University of Washington, University of Missouri, and University of Florida. Solid Biosciences Inc. was incorporated in 2013 and is headquartered in Charlestown, Massachusetts.

About Senti Biosciences

Senti Biosciences, Inc. operates as a preclinical biotechnology company that develops next-generation cell and gene therapies engineered with its gene circuit platform technologies for various diseases. Its lead product candidates utilize allogeneic chimeric antigen receptor natural killer (CAR-NK) cells outfitted with its gene circuit technologies in various oncology indications. The company product candidates include SENTI-202, a Logic Gated OR+NOT off-the-shelf CAR-NK cell therapy designed to target and eliminate cancer cells while sparing the healthy bone marrow; and SENTI-301A for the treatment of hepatocellular carcinoma. It also develops SENTI-401, a Logic Gated off-the-shelf CAR-NK cell therapy designed to target and eliminate colorectal cancer/CRC cells. In addition, the company develops Tumor-Associated Antigen and Protective Antigen Paired Discovery Platform to select and validate NOT GATE antigen candidates and identify tumor-associated antigens in cancer cells. The company has a strategic collaboration with Celest Therapeutics (Shanghai) Co. Ltd for the clinical development of SENTI-301A to treat solid tumors. Senti Biosciences, Inc. was incorporated in 2016 and is headquartered in South San Francisco, California.