Comparing Sorrento Therapeutics (OTCMKTS:SRNEQ) & Prime Medicine (NYSE:PRME)

Sorrento Therapeutics (OTCMKTS:SRNEQ) and Prime Medicine (NYSE:PRME) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Profitability

This table compares Sorrento Therapeutics and Prime Medicine’s 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
Prime Medicine	N/A	-107.87%	-74.97%

Earnings and Valuation

This table compares Sorrento Therapeutics and Prime Medicine”s gross revenue, earnings per share 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	N/A	N/A
Prime Medicine	$3.85 million	75.27	-$198.13 million	($1.61)	-1.37

Prime Medicine has lower revenue, but higher earnings than Sorrento Therapeutics.

Institutional & Insider Ownership

0.0% of Sorrento Therapeutics shares are held by institutional investors. Comparatively, 70.4% of Prime Medicine shares are held by institutional investors. 2.6% of Sorrento Therapeutics shares are held by company insiders. Comparatively, 22.9% of Prime Medicine shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Sorrento Therapeutics has a beta of 2.25, suggesting that its share price is 125% more volatile than the S&P 500. Comparatively, Prime Medicine has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Sorrento Therapeutics and Prime Medicine, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sorrento Therapeutics	0	0	0	0	0.00
Prime Medicine	0	3	4	1	2.75

Prime Medicine has a consensus target price of $10.08, suggesting a potential upside of 357.29%. Given Prime Medicine’s stronger consensus rating and higher possible upside, analysts clearly believe Prime Medicine is more favorable than Sorrento Therapeutics.

Summary

Prime Medicine beats Sorrento Therapeutics on 8 of the 12 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 Prime Medicine

Prime Medicine, Inc., a biotechnology company, delivers genetic therapies to address the spectrum of diseases by deploying gene editing technology. The company offers Prime Editors with a Prime Editor protein, comprising a fusion between a Cas protein and a reverse transcriptase enzyme; and a pegRNA, which targets the Prime Editor to a specific genomic location and provides a template for making the desired edit to the target DNA sequence. It has a research collaboration with Cimeio Therapeutics to develop Prime Edited Shielded-Cell & Immunotherapy Pairs for genetic diseases, acute myeloid leukemia, and myelodysplastic syndrome. The company was incorporated in 2019 and is based in Cambridge, Massachusetts.