Critical Comparison: Sorrento Therapeutics (NASDAQ:SRNE) & Tourmaline Bio (NASDAQ:TRML)

Sorrento Therapeutics (NASDAQ:SRNEGet Free Report) and Tourmaline Bio (NASDAQ:TRMLGet Free Report) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Sorrento Therapeutics and Tourmaline Bio, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sorrento Therapeutics 0 1 0 0 2.00
Tourmaline Bio 0 0 6 0 3.00

Tourmaline Bio has a consensus price target of $49.75, suggesting a potential upside of 35.37%. Given Tourmaline Bio’s stronger consensus rating and higher possible upside, analysts clearly believe Tourmaline Bio is more favorable than Sorrento Therapeutics.

Valuation & Earnings

This table compares Sorrento Therapeutics and Tourmaline Bio’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sorrento Therapeutics $60.32 million 0.20 -$428.33 million N/A N/A
Tourmaline Bio N/A N/A -$73.89 million ($14.94) -2.46

Tourmaline Bio has lower revenue, but higher earnings than Sorrento Therapeutics.

Institutional and Insider Ownership

34.5% of Sorrento Therapeutics shares are held by institutional investors. Comparatively, 67.6% of Tourmaline Bio shares are held by institutional investors. 2.6% of Sorrento Therapeutics shares are held by company insiders. Comparatively, 16.5% of Tourmaline Bio shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Sorrento Therapeutics and Tourmaline Bio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sorrento Therapeutics -818.22% -282.82% -57.64%
Tourmaline Bio N/A -35.63% -33.34%

Volatility & Risk

Sorrento Therapeutics has a beta of 1.95, suggesting that its share price is 95% more volatile than the S&P 500. Comparatively, Tourmaline Bio has a beta of 2.42, suggesting that its share price is 142% more volatile than the S&P 500.

Summary

Tourmaline Bio beats Sorrento Therapeutics on 10 of the 11 factors compared between the two stocks.

About Sorrento Therapeutics

(Get Free Report)

Sorrento Therapeutics, Inc. engages in the research, development and manufacture of biopharmaceutical products. It focuses on therapies to treat specific stages in the evolution of cancer, from elimination, to equilibrium and escape which include biosimilars, immuno-oncology antibodies, cellular therapy, cell internalizing antibodies, and antibody drug conjugates. It operates through the Sorrento Therapeutics and Scilex segments. The company was founded by Henry H. Ji in 1989 and is headquartered in San Diego, CA.

About Tourmaline Bio

(Get Free Report)

Tourmaline Bio, Inc. operates as a clinical biotechnology company that develops medicines for patients with life-altering immune diseases. It develops TOUR006, a human anti-IL-6 monoclonal antibody that selectively binds to interleukin-6, a key proinflammatory cytokine involved in the pathogenesis of many autoimmune and inflammatory disorders. The company's development pipeline also comprises medicines and therapies for the atherosclerotic cardiovascular disease (ASCVD) and thyroid eye disease (TED). Tourmaline Bio, Inc. was formerly known as Tourmaline Bio, LLC and changed its name to Tourmaline Bio, Inc. in September 2022. Tourmaline Bio, Inc. was incorporated in 2002 and is based in New York, New York.

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