Analyzing SQZ Biotechnologies (NYSE:SQZ) and Sorrento Therapeutics (OTCMKTS:SRNEQ)

Risk & Volatility

Sorrento Therapeutics has a beta of 2.25, indicating that its share price is 125% more volatile than the S&P 500. Comparatively, SQZ Biotechnologies has a beta of 2.34, indicating that its share price is 134% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sorrento Therapeutics	$62.84 million	0.02	-$572.84 million	($0.63)	0.00
SQZ Biotechnologies	$18.16 million	0.04	-$79.46 million	($2.61)	-0.01

SQZ Biotechnologies has lower revenue, but higher earnings than Sorrento Therapeutics. SQZ Biotechnologies is trading at a lower price-to-earnings ratio than Sorrento Therapeutics, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

0.0% of Sorrento Therapeutics shares are held by institutional investors. Comparatively, 38.5% of SQZ Biotechnologies shares are held by institutional investors. 2.6% of Sorrento Therapeutics shares are held by company insiders. Comparatively, 16.0% of SQZ Biotechnologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sorrento Therapeutics	N/A	N/A	N/A
SQZ Biotechnologies	-369.96%	-119.83%	-59.90%

Summary

Sorrento Therapeutics beats SQZ Biotechnologies on 6 of the 11 factors compared between the two stocks.

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.

About SQZ Biotechnologies

SQZ Biotechnologies Company, a clinical-stage biotechnology company, develops cell therapies for patients with cancer, autoimmune, infectious diseases, and other serious conditions. Its lead product candidate is SQZ-PBMC-HPV, from its SQZ Antigen Presenting Cells platform, which is in a Phase I clinical trial as a monotherapy and in combination with immuno-oncology agents for the treatment of HPV16+ advanced or metastatic solid tumors, including cervical, head-and-neck, anal, penile, vulvar, and vaginal cancer. The company also develops SQZ-AAC-HPV, which is in a Phase I clinical trial for the treatment of HPV16+ advanced or metastatic solid tumors in monotherapy and in combinations with immune-oncology agents. Its additional platforms in development are SQZ Activating Antigen Carriers; and SQZ Tolerizing Antigen Carriers. The Company was incorporated in 2013 and is headquartered in Watertown, Massachusetts.