Contrasting Cortexyme (NASDAQ:CRTX) & Sorrento Therapeutics (OTCMKTS:SRNEQ)

Profitability

This table compares Cortexyme and Sorrento Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cortexyme	N/A	-70.96%	-63.53%
Sorrento Therapeutics	N/A	N/A	N/A

Institutional & Insider Ownership

63.2% of Cortexyme shares are held by institutional investors. Comparatively, 0.0% of Sorrento Therapeutics shares are held by institutional investors. 27.9% of Cortexyme shares are held by insiders. Comparatively, 2.6% of Sorrento Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Cortexyme and Sorrento Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cortexyme	N/A	N/A	-$89.94 million	($2.97)	-0.05
Sorrento Therapeutics	$62.84 million	0.04	-$572.84 million	($0.63)	-0.01

Cortexyme has higher earnings, but lower revenue than Sorrento Therapeutics. Cortexyme is trading at a lower price-to-earnings ratio than Sorrento Therapeutics, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Cortexyme has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Sorrento Therapeutics has a beta of 2.25, indicating that its share price is 125% more volatile than the S&P 500.

Summary

Sorrento Therapeutics beats Cortexyme on 6 of the 9 factors compared between the two stocks.

About Cortexyme

Cortexyme, Inc., a clinical stage biopharmaceutical company, focuses on developing therapeutics for Alzheimer's and other degenerative diseases. Its lead drug candidate is atuzaginstat (COR388), an orally administered brain-penetrating small molecule gingipain inhibitor, which is in Phase II/III clinical trial for use in patients with mild to moderate Alzheimer's disease, as well as for the treatment of oral squamous cell carcinoma, periodontitis, and coronavirus infection. The company was incorporated in 2012 and is headquartered in South San Francisco, California.

About Sorrento Therapeutics

Sorrento Therapeutics, Inc., a clinical and commercial stage biopharmaceutical company, develops a portfolio of next-generation treatments for three therapeutic areas: cancer, infectious disease,and pain. It operates through two segments, Sorrento Therapeutics and Scilex. The company provides cancer therapeutic by leveraging its proprietary G-MAB antibody library and targeted delivery modalities, which include chimeric antigen receptor T-cell therapy (CAR-T), dimeric antigen receptor T-cell therapy, and antibody drug conjugate, as well as bispecific antibody approach; and Sofusa, a drug delivery technology that deliver biologic directly into the lymphatic system. Its clinical programs in development include anti-CD38 CAR-T therapy for the treatment of multiple myeloma, as well as for amyloidosis and graft versus host disease. The company develops resiniferatoxin, a non-opioid-based TRPV1 agonist neurotoxin for late stage cancer and osteoarthritis pain treatment; and ZTlido, a lidocaine topical system for the treatment of post-herpetic neuralgia. It engages in the development of SEMDEXA, an injectable viscous gel formulation, which is Phase III trial for the treatment of sciatica, a pathology of low back pain; SP-103, an investigational non-aqueous lidocaine topical system undergoing clinical development in chronic low back pain condition; and SP-104, a novel low-dose delayed-release naltrexone hydrochloride formulation for the treatment of fibromyalgia. It has collaboration with SmartPharm Therapeutics Inc. to develop gene-encoded antibody vaccine to protect against COVID-19; and Mayo Clinic for Phase Ib pilot study using sofusa lymphatic drug delivery technology to deliver Ipilimumab in patient with melanoma. The company was founded in 2006 and is based in San Diego, California. On February 13, 2023, Sorrento Therapeutics, Inc., along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. The plan was later approved as Chapter 11 liquidation on November 30, 2023.