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

Risk and Volatility

Icon has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, Sorrento Therapeutics has a beta of 2.24, indicating that its stock price is 124% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Icon 13.69% 26.35% 14.60%
Sorrento Therapeutics -15.76% -11.88% -5.43%

Insider & Institutional Ownership

87.9% of Icon shares are owned by institutional investors. Comparatively, 24.8% of Sorrento Therapeutics shares are owned by institutional investors. 44.0% of Icon shares are owned by insiders. Comparatively, 6.0% of Sorrento Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Icon and Sorrento Therapeutics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Icon $1.76 billion 4.62 $281.48 million $5.39 27.88
Sorrento Therapeutics $151.86 million 3.31 $9.13 million $0.13 33.08

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

Analyst Recommendations

This is a summary of recent recommendations for Icon and Sorrento Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Icon 0 2 6 0 2.75
Sorrento Therapeutics 0 0 3 0 3.00

Icon presently has a consensus target price of $144.13, indicating a potential downside of 4.08%. Sorrento Therapeutics has a consensus target price of $21.08, indicating a potential upside of 390.31%. Given Sorrento Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Sorrento Therapeutics is more favorable than Icon.

Summary

Icon beats Sorrento Therapeutics on 10 of the 14 factors compared between the two stocks.

About Icon

ICON Public Limited Company, a clinical research organization, provides outsourced development services to the pharmaceutical, biotechnology, and medical device industries in Ireland, rest of Europe, the United States, and internationally. It specializes in the strategic development, management, and analysis of programs that support various stages of the clinical development process from compound selection to Phase I-IV clinical studies. The company's clinical development services include product development planning, strategic consulting, study protocol preparation, clinical pharmacology, pharmacokinetic and pharmacodynamic analysis, clinical research center, investigator site, patient recruitment, study monitoring and data collection, case report form preparation, statistical analysis, patient safety and risk-based monitoring, clinical data management, strategic analysis and data operation, regulatory consulting, and medical reporting and pharmacovigilance services. Its clinical development services also comprise interactive response technologies, electronic endpoint adjudication, medical imaging, adaptive trial design and execution, medical device and biosimilar trial, functional, strategic resourcing, sample analyses, safety testing, microbiology, custom flow cytometry, biomarker development, bioanalysis, immunoassay development, patient registries, outcomes research, health economics, market access and commercialization, drug price consulting, and healthcare and scientific communication services, as well as research trials for the U.S. government agencies, electronic transmission of test results, and electronic patient reported outcomes. The company was founded in 1990 and is headquartered in Dublin, Ireland.

About Sorrento Therapeutics

Sorrento Therapeutics, Inc., a clinical stage biotechnology company, primarily engages in the discovery and development of therapies focused on oncology and the treatment of chronic cancer pain worldwide. The company is focusing on the development of chimeric antigen receptor (CAR)-based immunotherapies using autologous T-cells. It is developing CD38 Directed CAR-T, a cellular therapy used for the treatment of multiple myeloma, as well as for amyloidosis and graft-versus-host diseases; CD123 Directed CAR-T for the treatment of acute myelogenous leukemia; and human antibodies, including PD-1, PD-L1, CD38, CD123, CD47, c-MET, VEGFR2, CCR2, OX40, TIGIT, and CD137. The company is also developing intracellular targeting antibodies comprising STAT3, Mutant KRAS, MYC, p53, and TAU to modulate the evolution of cancer, inflammation, autoimmune diseases, diabetes, central nervous system diseases, cardiovascular diseases, and viral infections; and oncolytic viruses that infect and selectively multiply in and destroy tumor cells without damaging healthy tissue. In addition, it offers resiniferatoxin, a non-opioid-based TRPV1 agonist neurotoxin for the treatment of intractable pain treatment; and ZTlido, a lidocaine delivery system for the treatment of postherpetic neuralgia. The company has a licensing agreement with Mabtech Limited to develop and commercialize multiple prespecified biosimilar and biobetter antibodies from based on Erbitux, Remicade, Xolair, and Simulect. Sorrento Therapeutics, Inc. was founded in 2006 and is based in San Diego, California.

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