Fractyl Health (NASDAQ:GUTS – Get Free Report) and Surrozen (NASDAQ:SRZN – Get Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
Profitability
This table compares Fractyl Health and Surrozen’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fractyl Health | N/A | -2,896.77% | -105.72% |
| Surrozen | -2,909.10% | -4,055.04% | -88.90% |
Valuation and Earnings
This table compares Fractyl Health and Surrozen”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fractyl Health | $90,000.00 | 3,228.05 | -$68.69 million | ($2.29) | -0.93 |
| Surrozen | $3.60 million | 49.59 | -$63.56 million | ($22.34) | -0.93 |
Surrozen has higher revenue and earnings than Fractyl Health. Surrozen is trading at a lower price-to-earnings ratio than Fractyl Health, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
66.6% of Surrozen shares are owned by institutional investors. 26.1% of Fractyl Health shares are owned by company insiders. Comparatively, 43.5% of Surrozen shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Fractyl Health has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500. Comparatively, Surrozen has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations and price targets for Fractyl Health and Surrozen, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fractyl Health | 1 | 0 | 4 | 0 | 2.60 |
| Surrozen | 1 | 0 | 2 | 1 | 2.75 |
Fractyl Health presently has a consensus target price of $7.40, suggesting a potential upside of 249.06%. Surrozen has a consensus target price of $38.50, suggesting a potential upside of 84.65%. Given Fractyl Health’s higher possible upside, research analysts clearly believe Fractyl Health is more favorable than Surrozen.
Summary
Fractyl Health beats Surrozen on 8 of the 15 factors compared between the two stocks.
About Fractyl Health
Fractyl Health, Inc., a metabolic therapeutics company, develops therapies for the treatment of type 2 diabetes (T2D) and obesity. The company develops Revita DMR System (Revita), an outpatient procedural therapy designed to durably modify duodenal dysfunction, a pathologic consequence of a high fat and high sugar diet, which can initiate T2D and obesity in humans. It also develops Rejuva, a novel adeno-associated virus delivered pancreatic gene therapy platform that is designed to enable long-term remission of T2D and obesity by durably altering metabolic hormone function in the pancreatic islet cells of patients. Fractyl Health, Inc. was formerly known as Fractyl Laboratories Inc. and changed its name to Fractyl Health, Inc. on June 09, 2021. The company was incorporated in 2010 and is headquartered in Burlington, Massachusetts.
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.
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