Analyzing Sienna Biopharmaceuticals (OTCMKTS:SNNAQ) & HCW Biologics (NASDAQ:HCWB)

HCW Biologics (NASDAQ:HCWB) and Sienna Biopharmaceuticals (OTCMKTS:SNNAQ) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Analyst Recommendations

This is a summary of current recommendations for HCW Biologics and Sienna Biopharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HCW Biologics	1	0	1	0	2.00
Sienna Biopharmaceuticals	0	0	0	0	0.00

HCW Biologics presently has a consensus price target of $35.00, indicating a potential upside of 1,722.92%. Given HCW Biologics’ stronger consensus rating and higher possible upside, analysts clearly believe HCW Biologics is more favorable than Sienna Biopharmaceuticals.

Profitability

This table compares HCW Biologics and Sienna Biopharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HCW Biologics	-2,849.17%	N/A	-43.48%
Sienna Biopharmaceuticals	N/A	N/A	N/A

Valuation & Earnings

This table compares HCW Biologics and Sienna Biopharmaceuticals”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HCW Biologics	$2.57 million	2.02	-$30.02 million	($12.06)	-0.16
Sienna Biopharmaceuticals	N/A	N/A	N/A	N/A	N/A

Sienna Biopharmaceuticals has lower revenue, but higher earnings than HCW Biologics.

Institutional and Insider Ownership

3.0% of HCW Biologics shares are held by institutional investors. 42.7% of HCW Biologics shares are held by insiders. Comparatively, 27.2% of Sienna Biopharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

HCW Biologics has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Sienna Biopharmaceuticals has a beta of 0.05, indicating that its share price is 95% less volatile than the S&P 500.

Summary

HCW Biologics beats Sienna Biopharmaceuticals on 7 of the 9 factors compared between the two stocks.

About HCW Biologics

HCW Biologics Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing novel immunotherapies for chronic, low-grade inflammation, and age-related diseases in the United States. The company's lead products include HCW9218, which is in Phase 1 clinical chemo-refractory/chemo-resistant solid tumors with pancreatic, ovarian, breast, prostate, and colorectal cancers, as well as Phase 2 clinical trial with metastatic advanced stage ovarian cancer patients; and HCW9302 for autoimmune and proinflammatory diseases, such as alopecia areata diseases. It also develops HCW9201, a cell-based therapy that is in Phase I clinical trials for the treatment of patients with relapsed/refractory acute myelogenous leukemia; and HCW9206, an injectable immunotherapeutic to use as adjuvant for adoptive cell therapy in cancer treatment. HCW Biologics Inc. was incorporated in 2018 and is headquartered in Miramar, Florida.

About Sienna Biopharmaceuticals

Sienna Biopharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development of drugs in various therapeutic areas. It develops therapies in immunology and inflammation that target select pathways in tissues, such as skin. The company's lead product candidates include SNA-120, a first-in-class inhibitor of tropomyosin receptor kinase A, which is in a Phase IIb clinical trial for the treatment of psoriasis and associated pruritus; and SNA-125, a topical dual Janus kinase 3 inhibitor that is in Phase I/II clinical trials for the treatment of atopic dermatitis, psoriasis, and pruritus. It also develops SNA-001, a topical suspension of silver particles, which is in pivotal clinical trials for the treatment of acne, as well as for the reduction of light-pigmented hair, including white, gray, blonde, light brown, and light red hair. The company was formerly known as Sienna Labs, Inc. and changed its name to Sienna Biopharmaceuticals, Inc. in February 2016. Sienna Biopharmaceuticals, Inc. was founded in 2010 and is headquartered in Westlake Village, California. On December 18, 2019, Sienna Biopharmaceuticals, Inc. filed a voluntary petition for reorganization under Chapter 11 was converted to Chapter 7. It had filed for Chapter 11 bankruptcy on September 16, 2019.