Soleno Therapeutics (NASDAQ:SLNO – Get Free Report) and Surrozen (NASDAQ:SRZN – Get Free Report) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.
Analyst Recommendations
This is a summary of current recommendations and price targets for Soleno Therapeutics and Surrozen, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Soleno Therapeutics | 1 | 1 | 12 | 1 | 2.87 |
| Surrozen | 1 | 0 | 1 | 1 | 2.67 |
Soleno Therapeutics currently has a consensus target price of $110.62, suggesting a potential upside of 176.19%. Surrozen has a consensus target price of $32.00, suggesting a potential upside of 30.08%. Given Soleno Therapeutics’ stronger consensus rating and higher possible upside, equities analysts plainly believe Soleno Therapeutics is more favorable than Surrozen.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Soleno Therapeutics | N/A | N/A | -$175.85 million | ($1.84) | -21.77 |
| Surrozen | $10.65 million | 19.80 | -$63.56 million | ($22.34) | -1.10 |
Surrozen has higher revenue and earnings than Soleno Therapeutics. Soleno Therapeutics is trading at a lower price-to-earnings ratio than Surrozen, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Soleno Therapeutics and Surrozen’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Soleno Therapeutics | N/A | -25.88% | -19.84% |
| Surrozen | -2,909.10% | -4,055.04% | -88.90% |
Risk & Volatility
Soleno Therapeutics has a beta of -3.16, indicating that its stock price is 416% less volatile than the S&P 500. Comparatively, Surrozen has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.
Insider and Institutional Ownership
97.4% of Soleno Therapeutics shares are held by institutional investors. Comparatively, 66.6% of Surrozen shares are held by institutional investors. 6.4% of Soleno Therapeutics shares are held by company insiders. Comparatively, 45.2% of Surrozen shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Soleno Therapeutics beats Surrozen on 8 of the 13 factors compared between the two stocks.
About Soleno Therapeutics
Soleno Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of novel therapeutics for the treatment of rare diseases. Its lead candidate is Diazoxide Choline Extended-Release tablets, a once-daily oral tablet, which is in Phase III clinical trials for the treatment of Prader-Willi Syndrome. The company was formerly known as Capnia, Inc. and changed its name to Soleno Therapeutics, Inc. in May 2017. Soleno Therapeutics, Inc. was incorporated in 1999 and is based in Redwood City, California.
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.
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