Financial Analysis: Sorrento Therapeutics (OTCMKTS:SRNEQ) & TScan Therapeutics (NASDAQ:TCRX)

Sorrento Therapeutics (OTCMKTS:SRNEQ) and TScan Therapeutics (NASDAQ:TCRX) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for Sorrento Therapeutics and TScan Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sorrento Therapeutics	0	0	0	0	N/A
TScan Therapeutics	0	0	5	0	3.00

TScan Therapeutics has a consensus price target of $12.00, suggesting a potential upside of 114.67%. Given TScan Therapeutics’ higher probable upside, analysts plainly believe TScan Therapeutics is more favorable than Sorrento Therapeutics.

Insider and Institutional Ownership

0.0% of Sorrento Therapeutics shares are held by institutional investors. Comparatively, 82.8% of TScan Therapeutics shares are held by institutional investors. 2.6% of Sorrento Therapeutics shares are held by insiders. Comparatively, 2.8% of TScan Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Sorrento Therapeutics has a beta of 2.25, meaning that its share price is 125% more volatile than the S&P 500. Comparatively, TScan Therapeutics has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Profitability

This table compares Sorrento Therapeutics and TScan Therapeutics’ 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
TScan Therapeutics	-855.84%	-59.83%	-35.42%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sorrento Therapeutics	$62.84 million	0.03	-$572.84 million	N/A	N/A
TScan Therapeutics	$21.05 million	14.07	-$89.22 million	($1.28)	-4.37

TScan Therapeutics has lower revenue, but higher earnings than Sorrento Therapeutics.

Summary

TScan Therapeutics beats Sorrento Therapeutics on 6 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 TScan Therapeutics

TScan Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops T cell receptor-engineered T cell (TCR-T) therapies for the treatment of patients with cancer in the United States. The company's lead product candidates include TSC-100 and TSC-101 that is in Phase I clinical trial for the treatment of patients with hematologic malignancies to eliminate residual disease and prevent relapse after allogeneic hematopoietic cell transplantation. It also develops TSC-200, TSC-201, TSC-203, and TSC-204, which are in Phase 1 clinical trial, for the treatment of solid tumors; and TSC-202 to treat solid tumors. In addition, the company develops vaccines for infectious diseases, such as SARS-CoV-2. It has collaborations with Novartis Institutes for BioMedical Research, Inc. To discover and develop novel TCR-T therapies; and Amgen Inc. to identify antigens recognized by T cells in patients with Crohn's disease using TargetScan, a proprietary target discovery platform. TScan Therapeutics, Inc. was incorporated in 2018 and is headquartered in Waltham, Massachusetts.