Comparing REGENXBIO (NASDAQ:RGNX) & Sorrento Therapeutics (OTCMKTS:SRNEQ)

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

Volatility & Risk

Sorrento Therapeutics has a beta of 2.25, indicating that its share price is 125% more volatile than the S&P 500. Comparatively, REGENXBIO has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Profitability

This table compares Sorrento Therapeutics and REGENXBIO’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
REGENXBIO	-270.74%	-68.21%	-40.07%

Analyst Ratings

This is a breakdown of recent ratings for Sorrento Therapeutics and REGENXBIO, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sorrento Therapeutics	0	0	0	0	N/A
REGENXBIO	0	2	10	0	2.83

REGENXBIO has a consensus price target of $35.45, suggesting a potential upside of 304.73%. Given REGENXBIO’s higher possible upside, analysts clearly believe REGENXBIO is more favorable than Sorrento Therapeutics.

Institutional and Insider Ownership

0.0% of Sorrento Therapeutics shares are owned by institutional investors. Comparatively, 88.1% of REGENXBIO shares are owned by institutional investors. 2.6% of Sorrento Therapeutics shares are owned by company insiders. Comparatively, 13.1% of REGENXBIO shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Sorrento Therapeutics and REGENXBIO”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sorrento Therapeutics	$62.84 million	0.04	-$572.84 million	N/A	N/A
REGENXBIO	$90.24 million	4.80	-$263.49 million	($5.27)	-1.66

REGENXBIO has higher revenue and earnings than Sorrento Therapeutics.

Summary

REGENXBIO 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 REGENXBIO

REGENXBIO Inc., a clinical-stage biotechnology company, provides gene therapies that deliver functional genes to cells with genetic defects in the United States. Its gene therapy product candidates are based on NAV Technology Platform, a proprietary adeno-associated virus gene delivery platform. The company’s products in pipeline includes ABBV-RGX-314 for the treatment of wet age-related macular degeneration, diabetic retinopathy, and other chronic retinal diseases; and RGX-202, which is in Phase I/II clinical trial for the treatment of Duchenne muscular dystrophy. It also develops RGX-121 for the treatment of mucopolysaccharidosis type II that is in Phase III clinical trial; RGX-111 for treating mucopolysaccharidosis type I; RGX-181 for the treatment of late infantile neuronal ceroid lipofuscinosis type II; and RGX-381 to treat the ocular manifestations of CLN2 disease. In addition, the company licenses its NAV Technology Platform to other biotechnology and pharmaceutical companies. Further, it has a collaboration and license agreement with AbbVie Global Enterprises Ltd. to develop ABBV-RGX-314 outside the United States. REGENXBIO Inc. was incorporated in 2008 and is headquartered in Rockville, Maryland.