Critical Contrast: Surrozen (NASDAQ:SRZN) and Scienture (NASDAQ:SCNX)

Scienture (NASDAQ:SCNX) and Surrozen (NASDAQ:SRZN) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Insider & Institutional Ownership

5.7% of Scienture shares are owned by institutional investors. Comparatively, 66.6% of Surrozen shares are owned by institutional investors. 49.7% of Scienture shares are owned by company insiders. Comparatively, 45.2% of Surrozen shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Scienture and Surrozen”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scienture	$140,000.00	128.38	$9.07 million	N/A	N/A
Surrozen	$12.62 million	9.35	-$63.56 million	($14.42)	-0.95

Scienture has higher earnings, but lower revenue than Surrozen.

Profitability

This table compares Scienture and Surrozen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scienture	-10,364.22%	-24.47%	-19.30%
Surrozen	-274.42%	-545.43%	-64.40%

Analyst Ratings

This is a summary of recent ratings and price targets for Scienture and Surrozen, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scienture	0	0	0	0	0.00
Surrozen	0	0	2	0	3.00

Surrozen has a consensus target price of $38.50, suggesting a potential upside of 179.59%. Given Surrozen’s stronger consensus rating and higher possible upside, analysts clearly believe Surrozen is more favorable than Scienture.

Volatility and Risk

Scienture has a beta of 3.11, indicating that its stock price is 211% more volatile than the S&P 500. Comparatively, Surrozen has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

About Scienture

Scienture Holdings, Inc. engages in the provision of health services and pharmaceutical products. It focuses on addressing underserved patients and indications through novel product concepts and innovation. The company was founded on July 15, 2005 and is headquartered in Lutz, FL.

About Surrozen

Surrozen, Inc., a clinical stage biotechnology company, discovers and develops drug candidates to selectively modulate the Wnt pathway for tissue repair. The company is developing antibody-based therapeutics which targets various disease areas, including diseases of the intestine, liver, retina, cornea, lung, kidney, cochlea, skin, pancreas, and central nervous system. Its products in pipeline include SZN-043, a hepatocyte-specific R-spondin mimetic bispecific fusion protein, which is in Phase 1b clinical trial for the treatment of severe liver diseases, including alcohol-associated hepatitis. The company develops SZN-413, a Fzd4 targeted bi-specific antibody for the treatment of retinal vascular associated diseases. Surrozen, Inc. has collaboration and license agreement with Boehringer Ingelheim International GmbH to research, develop, and commercialize Fzd4 bi-specific antibodies. Surrozen, Inc. is based in South San Francisco, California.