Alpha Cognition (OTC:ACOGF) versus Sorrento Therapeutics (NASDAQ:SRNE) Critical Analysis

Sorrento Therapeutics (NASDAQ:SRNE) and Alpha Cognition (OTC:ACOGF) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.

Earnings and Valuation

This table compares Sorrento Therapeutics and Alpha Cognition”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sorrento Therapeutics	$60.32 million	0.06	-$572.84 million	($0.63)	-0.01
Alpha Cognition	N/A	N/A	-$13.77 million	C($0.12)	N/A

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

Insider and Institutional Ownership

0.0% of Sorrento Therapeutics shares are owned by institutional investors. 2.6% of Sorrento Therapeutics shares are owned by insiders. Comparatively, 31.5% of Alpha Cognition shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Sorrento Therapeutics and Alpha Cognition’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
Alpha Cognition	N/A	N/A	-522.43%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Sorrento Therapeutics and Alpha Cognition, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sorrento Therapeutics	0	0	0	0	0.00
Alpha Cognition	0	0	1	0	3.00

Given Alpha Cognition’s stronger consensus rating and higher probable upside, analysts plainly believe Alpha Cognition is more favorable than Sorrento Therapeutics.

Volatility & Risk

Sorrento Therapeutics has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Alpha Cognition has a beta of 2.8, indicating that its stock price is 180% more volatile than the S&P 500.

Summary

Alpha Cognition beats Sorrento Therapeutics on 7 of the 11 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 Alpha Cognition

Alpha Cognition Inc., a clinical stage biopharmaceutical company, develops treatments for Alzheimer’s disease and amyotrophic lateral sclerosis (ALS). It develops ALPHA-1062 for the treatment of mild-to-moderate Alzheimer’s disease and mild traumatic brain injury; ALPHA-0602, a gene therapy for the treatment of ALS; and ALPHA-0702 and ALPHA-0802, a granulin epithelin motifs for the treatment of neurodegenerative diseases. The company was formerly known as Crystal Bridge Enterprises Inc. and changed its name to Alpha Cognition Inc. in March 2021. Alpha Cognition Inc. was founded in 2000 and is headquartered in Vancouver, Canada.