Contrasting Fresh Tracks Therapeutics (NASDAQ:FRTX) and Sorrento Therapeutics (NASDAQ:SRNE)

Sorrento Therapeutics (NASDAQ:SRNE) and Fresh Tracks Therapeutics (NASDAQ:FRTX) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Insider & Institutional Ownership

0.0% of Sorrento Therapeutics shares are owned by institutional investors. Comparatively, 25.0% of Fresh Tracks Therapeutics shares are owned by institutional investors. 2.6% of Sorrento Therapeutics shares are owned by company insiders. Comparatively, 0.2% of Fresh Tracks Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sorrento Therapeutics	N/A	N/A	N/A
Fresh Tracks Therapeutics	N/A	-60.83%	-50.73%

Valuation & Earnings

This table compares Sorrento Therapeutics and Fresh Tracks Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sorrento Therapeutics	$62.84 million	0.04	-$572.84 million	N/A	N/A
Fresh Tracks Therapeutics	$8.01 million	0.55	-$5.69 million	($1.41)	-0.52

Fresh Tracks Therapeutics has lower revenue, but higher earnings than Sorrento Therapeutics.

Volatility and Risk

Sorrento Therapeutics has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500. Comparatively, Fresh Tracks Therapeutics has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Sorrento Therapeutics and Fresh Tracks Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sorrento Therapeutics	0	0	0	0	N/A
Fresh Tracks Therapeutics	0	0	0	0	N/A

Summary

Sorrento Therapeutics beats Fresh Tracks Therapeutics on 5 of the 8 factors compared between the two stocks.

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.

About Fresh Tracks Therapeutics

Fresh Tracks Therapeutics, Inc. does not have significant operations. Previously, the company was engaged in the development of various prescription therapeutics for the treatment of autoimmune, inflammatory, and other debilitating diseases in the United States. Fresh Tracks Therapeutics, Inc. was founded in 2009 and is headquartered in Boulder, Colorado.