Comparing Poseida Therapeutics (NASDAQ:PSTX) and Sorrento Therapeutics (NASDAQ:SRNE)

Poseida Therapeutics (NASDAQ:PSTX) and Sorrento Therapeutics (NASDAQ:SRNE) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.

Risk and Volatility

Poseida Therapeutics has a beta of 1.63, suggesting that its stock price is 63% more 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.

Institutional and Insider Ownership

46.9% of Poseida Therapeutics shares are held by institutional investors. Comparatively, 0.0% of Sorrento Therapeutics shares are held by institutional investors. 2.9% of Poseida Therapeutics shares are held by insiders. Comparatively, 2.6% of Sorrento Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Poseida Therapeutics and Sorrento Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Poseida Therapeutics	$150.86 million	6.16	-$123.43 million	($0.63)	-15.08
Sorrento Therapeutics	$62.84 million	0.04	-$572.84 million	N/A	N/A

Poseida Therapeutics has higher revenue and earnings than Sorrento Therapeutics.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Poseida Therapeutics and Sorrento Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Poseida Therapeutics	0	5	0	0	2.00
Sorrento Therapeutics	0	0	0	0	0.00

Poseida Therapeutics presently has a consensus price target of $9.50, suggesting a potential upside of 0.00%. Given Poseida Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Poseida Therapeutics is more favorable than Sorrento Therapeutics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Poseida Therapeutics	-40.28%	-72.26%	-21.53%
Sorrento Therapeutics	N/A	N/A	N/A

Summary

Poseida Therapeutics beats Sorrento Therapeutics on 7 of the 11 factors compared between the two stocks.

About Poseida Therapeutics

Poseida Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing therapeutics for patients with high unmet medical needs. The company's development candidates for Heme Malignancies includes P-BCMA-ALLO1, which is in Phase I trial to treat patients with relapsed/refractory multiple myeloma; P-CD19CD20-ALLO1, which is in Phase I trial for treating B cell malignancies and other autoimmune diseases; P-BCMACD19-ALLO1, an allogeneic, off-the-shelf CAR-T product candidate in preclinical development for treating multiple myeloma; and P-CD70-ALLO1 under preclinical development to treat hematological indications. It is also involved in the development of P-MUC1C-ALLO1 that is in Phase I trial for treating a range of solid tumors, including breast, colorectal, lung, ovarian, pancreatic, and renal cancers; P-PSMA-ALLO1, an autologous chimeric antigen receptor T cell (CAR-T) product candidate that is in preclinical development for the treatment of patients with metastatic castrate resistant prostate cancer (mCRPC); and P-PSMA-101, an allogeneic CAR-T product candidate under Phase 1 clinical trial for treating mCRPC. In addition, the company engages in the development of P-FVIII-101, a clinical stage liver-directed gene therapy for the in vivo treatment of hemophilia A; P-OTC-101, a clinical stage liver-directed gene therapy for the in vivo treatment of ornithine transcarbamylase deficiency; and P-PAH-101, a clinical stage liver-directed gene therapy for the in vivo treatment of phenylketonuria. It has a research collaboration and license agreement with F. Hoffmann-La Roche Ltd, and Hoffmann-La Roche Inc. The company was incorporated in 2014 and is headquartered in San Diego, 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.