Critical Contrast: Cyclo Therapeutics (NASDAQ:CYTH) and Sorrento Therapeutics (NASDAQ:SRNE)

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

Profitability

This table compares Cyclo Therapeutics and Sorrento Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cyclo Therapeutics	-2,847.19%	N/A	-307.16%
Sorrento Therapeutics	N/A	N/A	N/A

Insider and Institutional Ownership

68.6% of Cyclo Therapeutics shares are held by institutional investors. Comparatively, 0.0% of Sorrento Therapeutics shares are held by institutional investors. 29.8% of Cyclo Therapeutics shares are held by company insiders. Comparatively, 2.6% of Sorrento Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cyclo Therapeutics	$870,725.00	27.24	-$20.06 million	($0.90)	-0.80
Sorrento Therapeutics	$60.32 million	0.02	-$572.84 million	N/A	N/A

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

Risk & Volatility

Cyclo Therapeutics has a beta of -0.57, meaning that its share price is 157% less volatile than the S&P 500. Comparatively, Sorrento Therapeutics has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Cyclo Therapeutics and Sorrento Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cyclo Therapeutics	0	2	1	0	2.33
Sorrento Therapeutics	0	0	0	0	0.00

Cyclo Therapeutics presently has a consensus price target of $0.95, suggesting a potential upside of 31.83%. Given Cyclo Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Cyclo Therapeutics is more favorable than Sorrento Therapeutics.

Summary

Cyclo Therapeutics beats Sorrento Therapeutics on 7 of the 11 factors compared between the two stocks.

About Cyclo Therapeutics

Cyclo Therapeutics, Inc., a clinical stage biotechnology company, engages in the development of cyclodextrin-based products for the treatment of neurodegenerative diseases. The company's lead drug candidate is Trappsol Cyclo (hydroxypropyl beta cyclodextrin), an orphan drug, which is in Phase III clinical trials for the treatment of Niemann-Pick Type C disease; and in Phase IIb clinical trials for the treatment of Alzheimer's disease. It also sells cyclodextrins and related products to the pharmaceutical, nutritional, and other industries, primarily for use in diagnostics and specialty drugs. The company was formerly known as CTD Holdings, Inc. and changed its name to Cyclo Therapeutics, Inc. in September 2019. Cyclo Therapeutics, Inc. was incorporated in 1990 and is headquartered in Gainesville, Florida.

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.