Head-To-Head Review: Sorrento Therapeutics (OTCMKTS:SRNEQ) versus Anavex Life Sciences (NASDAQ:AVXL)

Anavex Life Sciences (NASDAQ:AVXL) and Sorrento Therapeutics (OTCMKTS:SRNEQ) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Profitability

This table compares Anavex Life Sciences and Sorrento Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Anavex Life Sciences	N/A	-37.50%	-34.08%
Sorrento Therapeutics	N/A	N/A	N/A

Insider and Institutional Ownership

31.5% of Anavex Life Sciences shares are held by institutional investors. Comparatively, 0.0% of Sorrento Therapeutics shares are held by institutional investors. 11.0% of Anavex Life Sciences shares are held by insiders. Comparatively, 2.6% of Sorrento Therapeutics shares are held by 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.

Volatility & Risk

Anavex Life Sciences has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Sorrento Therapeutics has a beta of 2.25, indicating that its stock price is 125% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Anavex Life Sciences and Sorrento Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anavex Life Sciences	0	0	2	1	3.33
Sorrento Therapeutics	0	0	0	0	0.00

Anavex Life Sciences currently has a consensus price target of $44.00, suggesting a potential upside of 393.83%. Given Anavex Life Sciences’ stronger consensus rating and higher possible upside, analysts plainly believe Anavex Life Sciences is more favorable than Sorrento Therapeutics.

Valuation & Earnings

This table compares Anavex Life Sciences and Sorrento Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Anavex Life Sciences	N/A	N/A	-$43.00 million	($0.55)	-16.20
Sorrento Therapeutics	$62.84 million	0.01	-$572.84 million	N/A	N/A

Anavex Life Sciences has higher earnings, but lower revenue than Sorrento Therapeutics.

Summary

Anavex Life Sciences beats Sorrento Therapeutics on 7 of the 11 factors compared between the two stocks.

About Anavex Life Sciences

Anavex Life Sciences Corp., a clinical stage biopharmaceutical company, engages in the development of therapeutics for the treatment of central nervous system diseases. Its lead product candidate is ANAVEX 2-73 for the treatment of Alzheimer's disease and Parkinson's disease, as well as other central nervous system diseases, including rare diseases, such as Rett syndrome, a rare severe neurological monogenic disorder; and infantile spasms, Fragile X syndrome, and Angelman syndrome. The company's drug candidate also comprises ANAVEX 3-71, which is in clinical trial for the treatment of schizophrenia, frontotemporal dementia, and Alzheimer's disease. Its preclinical drug candidates include ANAVEX 1-41 for the treatment of depression, stroke, and neurogenerative disease; ANAVEX 1066 for the potential treatment of neuropathic and visceral pain; and ANAVEX 1037 to treat prostate and pancreatic cancer. The company was incorporated in 2004 and is headquartered in New York, New York.

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.