Critical Comparison: Sana Biotechnology (NASDAQ:SANA) & Edesa Biotech (NASDAQ:EDSA)

Sana Biotechnology (NASDAQ:SANA) and Edesa Biotech (NASDAQ:EDSA) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.

Profitability

This table compares Sana Biotechnology and Edesa Biotech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sana Biotechnology	N/A	-91.96%	-43.07%
Edesa Biotech	N/A	-162.95%	-60.33%

Analyst Ratings

This is a breakdown of current recommendations for Sana Biotechnology and Edesa Biotech, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sana Biotechnology	0	0	7	0	3.00
Edesa Biotech	0	0	0	1	4.00

Sana Biotechnology presently has a consensus target price of $7.50, indicating a potential upside of 111.86%. Edesa Biotech has a consensus target price of $5.00, indicating a potential upside of 104.08%. Given Sana Biotechnology’s higher possible upside, equities analysts clearly believe Sana Biotechnology is more favorable than Edesa Biotech.

Institutional and Insider Ownership

88.2% of Sana Biotechnology shares are owned by institutional investors. Comparatively, 5.5% of Edesa Biotech shares are owned by institutional investors. 31.1% of Sana Biotechnology shares are owned by insiders. Comparatively, 22.6% of Edesa Biotech shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Sana Biotechnology has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500. Comparatively, Edesa Biotech has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500.

Earnings and Valuation

This table compares Sana Biotechnology and Edesa Biotech”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sana Biotechnology	N/A	N/A	-$266.76 million	($1.06)	-3.34
Edesa Biotech	N/A	N/A	-$6.17 million	($1.32)	-1.86

Sana Biotechnology is trading at a lower price-to-earnings ratio than Edesa Biotech, indicating that it is currently the more affordable of the two stocks.

Summary

Sana Biotechnology beats Edesa Biotech on 8 of the 12 factors compared between the two stocks.

About Sana Biotechnology

Sana Biotechnology, Inc., a biotechnology company, focuses on utilizing engineered cells as medicines. It develops ex vivo and in vivo cell engineering platforms for various therapeutic areas with unmet treatment needs, including oncology, diabetes, central nervous system disorders, B-cell-mediated autoimmune, and others. The company’s product candidates include SC291 that is used as allogeneic cell therapies for hematologic malignancies; ARDENT for a potential treatment for non-Hodgkin’s lymphoma, and chronic lymphoblastic leukemia; GLEAM, to treat multiple autoimmune disorders that involve production of autoimmune antibodies, including lupus nephritis, extrarenal lupus, antineutrophil cytoplasmic antibody -associated vasculitis, and others. It is developing SC262 to treat patients with relapsed and/or refractory B-cell malignancies; SC255 for multiple myeloma treatment; SC379, a therapy for patients with certain central nervous system disorders healthy allogeneic glial progenitor cells; SC451, a product candidate to treat diabetes, with an initial focus on type 1 diabetes mellitus; and UP421 that reduces long-term exogenous insulin dependence. The company has an option and license agreement with Beam Therapeutics Inc. for use of Beam’s proprietary CRISPR Cas12b nuclease editing technology to research, develop, and commercialize engineered cell therapy products; and a license agreement with Harvard College to access certain intellectual property for the development of hypoimmune-modified cells. The company was formerly known as FD Therapeutics, Inc. and changed its name to Sana Biotechnology, Inc. in September 2018. Sana Biotechnology, Inc. was incorporated in 2018 and is headquartered in Seattle, Washington.

About Edesa Biotech

Edesa Biotech, Inc., a clinical-stage biopharmaceutical company, engages in the research and development, manufacture, and commercialization of pharmaceutical products for inflammatory and immune-related diseases. Its lead product candidates are EB05, a monoclonal antibody, which is in Phase 3 clinical study for the treatment of acute respiratory distress syndrome in Covid-19 patients; and EB01, a topical vanishing cream containing non-steroidal anti-inflammatory compound that has completed Phase 2b clinical study to treat chronic allergic contact dermatitis. The company also develops EB02, an extension of secretory phospholipase 2 anti-inflammatory cream for treating erythema, swelling, and exudation associated with hemorrhoids disease; and EB06, an anti- chemokine ligand 10 (CXCL10) monoclonal antibody in vitiligo. It has a collaboration agreement with NovImmune SA to develop monoclonal antibodies targeting products containing toll-like receptor 4 and CXCL10 for therapeutic, prophylactic, and diagnostic applications in humans and animals; and Yissum Research Development Company for the development of products for therapeutic, prophylactic, and diagnostic uses in topical dermal and anorectal applications, as well as for the use in dermatologic and gastrointestinal conditions. The company was founded in 2015 and is headquartered in Markham, Canada.