Critical Comparison: Finch Therapeutics Group (NASDAQ:FNCH) & Sorrento Therapeutics (NASDAQ:SRNE)

Valuation & Earnings

This table compares Finch Therapeutics Group 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
Finch Therapeutics Group	N/A	N/A	-$74.75 million	($8.82)	-0.90
Sorrento Therapeutics	$60.32 million	0.01	-$572.84 million	($0.43)	0.00

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

Risk and Volatility

Finch Therapeutics Group has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Sorrento Therapeutics has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Finch Therapeutics Group	N/A	-69.14%	-26.92%
Sorrento Therapeutics	N/A	N/A	N/A

Insider and Institutional Ownership

21.8% of Finch Therapeutics Group shares are owned by institutional investors. Comparatively, 0.0% of Sorrento Therapeutics shares are owned by institutional investors. 44.9% of Finch Therapeutics Group shares are owned by company insiders. Comparatively, 2.6% of Sorrento Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Sorrento Therapeutics beats Finch Therapeutics Group on 5 of the 9 factors compared between the two stocks.

About Finch Therapeutics Group

Finch Therapeutics Group, Inc., a clinical-stage microbiome therapeutics company, develops a novel class of orally administered biological drugs in the United States. The company develops FIN-211, a microbiome candidate designed to address the gastrointestinal and behavioral symptoms of autism spectrum disorder; and FIN-524 for the prevention, diagnosis, theragnosis or treatment of diseases in humans, including ulcerative colitis; FIN-525 for the treatment of Crohn's disease; and other microbiome product candidates. The company has collaboration and license agreements with Takeda Pharmaceutical Company Limited; and license agreements with Skysong Innovations LLC, OpenBiome, Arizona State University, and University of Minnesota. Finch Therapeutics Group, Inc. was incorporated in 2014 and is based in Boston, Massachusetts.

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.