Critical Review: Genmab A/S (NASDAQ:GMAB) versus Sutro Biopharma (NASDAQ:STRO)

Sutro Biopharma (NASDAQ:STRO) and Genmab A/S (NASDAQ:GMAB) are both healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Profitability

This table compares Sutro Biopharma and Genmab A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sutro Biopharma	-395.25%	N/A	-88.12%
Genmab A/S	19.08%	14.89%	7.73%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Sutro Biopharma and Genmab A/S, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sutro Biopharma	1	0	10	2	3.00
Genmab A/S	0	2	9	1	2.92

Sutro Biopharma presently has a consensus target price of $49.50, indicating a potential upside of 383.87%. Genmab A/S has a consensus target price of $53.61, indicating a potential downside of 0.91%. Given Sutro Biopharma’s stronger consensus rating and higher possible upside, analysts clearly believe Sutro Biopharma is more favorable than Genmab A/S.

Earnings & Valuation

This table compares Sutro Biopharma and Genmab A/S”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sutro Biopharma	$102.48 million	1.66	-$191.09 million	($11.97)	-0.85
Genmab A/S	$3.72 billion	9.08	$963.00 million	$1.17	46.24

Genmab A/S has higher revenue and earnings than Sutro Biopharma. Sutro Biopharma is trading at a lower price-to-earnings ratio than Genmab A/S, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Sutro Biopharma has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500. Comparatively, Genmab A/S has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Insider and Institutional Ownership

97.0% of Sutro Biopharma shares are owned by institutional investors. Comparatively, 7.1% of Genmab A/S shares are owned by institutional investors. 1.8% of Sutro Biopharma shares are owned by company insiders. Comparatively, 1.5% of Genmab A/S 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.

Summary

Genmab A/S beats Sutro Biopharma on 8 of the 15 factors compared between the two stocks.

About Sutro Biopharma

Sutro Biopharma, Inc. is a clinical-stage biotechnology company focused on developing medicines for cancer and other serious diseases. The company uses its proprietary XpressCF cell-free protein synthesis platform to design and manufacture targeted biologic therapies, including antibody-drug conjugates (ADCs) and cancer immunotherapies. Sutro’s research programs have included luveltamab tazevibulin, also known as STRO-002, a folate receptor alpha-targeted ADC being investigated for ovarian and endometrial cancers.

About Genmab A/S

Genmab A/S is a biotechnology company founded in 1999 and headquartered in Copenhagen, Denmark. It discovers and develops antibody-based medicines, with a focus on cancer and other serious diseases. The company develops treatments independently and with pharmaceutical partners. Its collaborations have resulted in medicines including daratumumab (Darzalex), developed with Johnson & Johnson, and epcoritamab (Epkinly), developed with AbbVie. Genmab also advances a pipeline of antibody-based therapies and uses proprietary technologies to design and engineer therapeutic antibodies.