Cabaletta Bio (NASDAQ:CABA) & Surrozen (NASDAQ:SRZN) Critical Analysis

Cabaletta Bio (NASDAQ:CABA) and Surrozen (NASDAQ:SRZN) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Cabaletta Bio and Surrozen, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cabaletta Bio	0	1	7	1	3.00
Surrozen	0	0	2	0	3.00

Cabaletta Bio presently has a consensus price target of $21.00, suggesting a potential upside of 1,791.89%. Surrozen has a consensus price target of $38.50, suggesting a potential upside of 250.32%. Given Cabaletta Bio’s higher probable upside, equities research analysts plainly believe Cabaletta Bio is more favorable than Surrozen.

Volatility and Risk

Cabaletta Bio has a beta of 2.44, suggesting that its share price is 144% more volatile than the S&P 500. Comparatively, Surrozen has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Earnings and Valuation

This table compares Cabaletta Bio and Surrozen”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cabaletta Bio	N/A	N/A	-$67.68 million	($2.34)	-0.47
Surrozen	$10.00 million	3.57	-$43.04 million	N/A	N/A

Surrozen has higher revenue and earnings than Cabaletta Bio.

Institutional and Insider Ownership

66.6% of Surrozen shares are owned by institutional investors. 9.9% of Cabaletta Bio shares are owned by insiders. Comparatively, 43.5% of Surrozen shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Cabaletta Bio and Surrozen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cabaletta Bio	N/A	-50.10%	-45.49%
Surrozen	N/A	-120.51%	-54.68%

Summary

Cabaletta Bio beats Surrozen on 6 of the 10 factors compared between the two stocks.

About Cabaletta Bio

Cabaletta Bio, Inc., a clinical-stage biotechnology company, focuses on the discovery and development of engineered T cell therapies for patients with B cell-mediated autoimmune diseases. The company's lead product candidate is CABA-201, a fully human anti-CD19 binder for the treatment of Phase 1/2 clinical trials in dermatomyositis, anti-synthetase syndrome, immune-mediated necrotizing myopathy, lupus nephritis, non-renal systemic lupus erythematosus, systemic sclerosis, and generalized myasthenia gravis. It also develops DSG3-CAART, which is in Phase I/II clinical trial for the treatment of mucosal pemphigus vulgaris; and MuSK-CAART, an investigational cell therapy that is in Phase I/II clinical trial for treating patients with anti- muscle-specific kinase antibody positive myasthenia gravis. It has a collaboration with the University of Pennsylvania and the Children's Hospital of Philadelphia; Nanjing IASO Biotherapeutics Co., Ltd; Oxford Biomedica; and WuXi Advanced Therapies, Inc. The company was formerly known as Tycho Therapeutics, Inc. and changed its name to Cabaletta Bio, Inc. in August 2018. Cabaletta Bio, Inc. was incorporated in 2017 and is headquartered in Philadelphia, Pennsylvania.

About Surrozen

Surrozen, Inc., a clinical stage biotechnology company, discovers and develops drug candidates to selectively modulate the Wnt pathway for tissue repair. The company is developing antibody-based therapeutics which targets various disease areas, including diseases of the intestine, liver, retina, cornea, lung, kidney, cochlea, skin, pancreas, and central nervous system. Its products in pipeline include SZN-043, a hepatocyte-specific R-spondin mimetic bispecific fusion protein, which is in Phase 1b clinical trial for the treatment of severe liver diseases, including alcohol-associated hepatitis. The company develops SZN-413, a Fzd4 targeted bi-specific antibody for the treatment of retinal vascular associated diseases. Surrozen, Inc. has collaboration and license agreement with Boehringer Ingelheim International GmbH to research, develop, and commercialize Fzd4 bi-specific antibodies. Surrozen, Inc. is based in South San Francisco, California.