Head-To-Head Survey: Ultragenyx Pharmaceutical (NASDAQ:RARE) and Sutro Biopharma (NASDAQ:STRO)

Ultragenyx Pharmaceutical (NASDAQ:RARE) and Sutro Biopharma (NASDAQ:STRO) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Ultragenyx Pharmaceutical and Sutro Biopharma, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ultragenyx Pharmaceutical	0	1	11	0	2.92
Sutro Biopharma	1	4	2	0	2.14

Ultragenyx Pharmaceutical currently has a consensus price target of $81.50, suggesting a potential upside of 180.26%. Sutro Biopharma has a consensus price target of $4.47, suggesting a potential upside of 403.80%. Given Sutro Biopharma’s higher possible upside, analysts clearly believe Sutro Biopharma is more favorable than Ultragenyx Pharmaceutical.

Valuation and Earnings

This table compares Ultragenyx Pharmaceutical and Sutro Biopharma”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ultragenyx Pharmaceutical	$610.16 million	4.59	-$569.18 million	($5.53)	-5.26
Sutro Biopharma	$104.47 million	0.72	-$227.46 million	($2.53)	-0.35

Sutro Biopharma has lower revenue, but higher earnings than Ultragenyx Pharmaceutical. Ultragenyx Pharmaceutical is trading at a lower price-to-earnings ratio than Sutro Biopharma, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

97.7% of Ultragenyx Pharmaceutical shares are owned by institutional investors. Comparatively, 97.0% of Sutro Biopharma shares are owned by institutional investors. 5.5% of Ultragenyx Pharmaceutical shares are owned by company insiders. Comparatively, 3.6% of Sutro Biopharma shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Ultragenyx Pharmaceutical has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500. Comparatively, Sutro Biopharma has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500.

Profitability

This table compares Ultragenyx Pharmaceutical and Sutro Biopharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ultragenyx Pharmaceutical	-87.34%	-237.48%	-37.66%
Sutro Biopharma	-201.32%	-852.70%	-58.67%

Summary

Ultragenyx Pharmaceutical beats Sutro Biopharma on 9 of the 14 factors compared between the two stocks.

About Ultragenyx Pharmaceutical

Ultragenyx Pharmaceutical Inc., a biopharmaceutical company, focuses on the identification, acquisition, development, and commercialization of novel products for the treatment of rare and ultra-rare genetic diseases in North America, Latin America, Japan, Europe, and internationally. Its biologic products include Crysvita (burosumab), an antibody targeting fibroblast growth factor 23 for the treatment of X-linked hypophosphatemia, as well as tumor-induced osteomalacia; Mepsevii, an enzyme replacement therapy for the treatment of children and adults with Mucopolysaccharidosis VII; Dojolvi for treating long-chain fatty acid oxidation disorders; and Evkeeza (evinacumab) for the treatment of homozygous familial hypercholesterolemia. The company's products candidatures include DTX401, an adeno-associated virus 8 (AAV8) gene therapy clinical candidate for the treatment of patients with glycogen storage disease type Ia; DTX301, an AAV8 gene therapy for the treatment of patients with ornithine transcarbamylase; UX143, a human monoclonal antibody for the treatment of osteogenesis imperfecta; GTX-102, an antisense oligonucleotide for the treatment of Angelman syndrome; UX111, an AAV9 gene therapy product candidate for the treatment of patients with Sanfilippo syndrome type A, or MPS IIIA, a rare lysosomal storage disease; UX701, for the treatment of Wilson disease; and UX053 for the treatment of glycogen storage disease type III. Ultragenyx Pharmaceutical Inc. has collaboration and license agreement with Kyowa Kirin Co., Ltd.; Saint Louis University; Baylor Research Institute; REGENXBIO Inc.; Bayer Healthcare LLC; GeneTx; Mereo; University of Pennsylvania; Arcturus Therapeutics Holdings Inc.; Solid Biosciences Inc.; Regeneron; Abeona; and Daiichi Sankyo Co., Ltd. The company was incorporated in 2010 and is headquartered in Novato, California.

About Sutro Biopharma

Sutro Biopharma, Inc. operates as a clinical-stage oncology company. The company develops site-specific and novel-format antibody drug conjugates (ADCs) that enables its proprietary integrated cell-free protein synthesis platform, XpressCF and XpressCF+. Its product candidates include STRO-002, an ADC directed against folate receptor-alpha, which is in Phase II/III clinical trials for patients with ovarian and endometrial cancers; VAX-24 and Vax-31 pneumococcal conjugate vaccine candidates that is in Phase II/III clinical trials for the treatment of invasive pneumococcal disease; and MK-1484, a distinct cytokine derivative molecule that is in Phase I clinical study for the treatment of cancer. The company's pre-clinical product candidates include STRO-003, an ADC directed against an anti-receptor tyrosine kinase-like orphan receptor 1 (ROR1) for the treatment of solid tumors and hematological cancers; and STRO-004, a tissue factor (TF) targeting ADC for the treatment of TF-expressing solid tumors, including cervical, lung, and breast cancer. Sutro Biopharma, Inc. has collaboration and license agreements with Merck Sharp & Dohme Corporation to develop research programs focusing on cytokine derivatives for cancer and autoimmune disorders; Vaxcyte to discover and develop vaccine candidates for the treatment or prophylaxis of infectious diseases; Tasly Biopharmaceuticals Co., Ltd. to develop and commercialize STRO-002 in Greater China; EMD Serono to develop ADCs for multiple cancer targets; and Astellas Pharma Inc. to develop immunostimulatory ADC. The company was formerly known as Fundamental Applied Biology, Inc. Sutro Biopharma, Inc. was incorporated in 2003 and is headquartered in South San Francisco, California.