Contrasting Genmab A/S (NASDAQ:GMAB) & Sutro Biopharma (NASDAQ:STRO)

Genmab A/S (NASDAQ:GMAB) and Sutro Biopharma (NASDAQ:STRO) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Profitability

This table compares Genmab A/S and Sutro Biopharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genmab A/S	19.08%	14.89%	7.73%
Sutro Biopharma	-395.25%	N/A	-88.12%

Valuation & Earnings

This table compares Genmab A/S and Sutro Biopharma”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genmab A/S	$3.72 billion	9.08	$963.00 million	$1.17	46.24
Sutro Biopharma	$102.48 million	1.66	-$191.09 million	($11.97)	-0.85

Genmab A/S has higher revenue and earnings than Sutro Biopharma. Sutro Biopharma is trading at a lower price-to-earnings ratio than Genmab A/S, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Genmab A/S has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Sutro Biopharma has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Genmab A/S and Sutro Biopharma, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genmab A/S	0	2	9	1	2.92
Sutro Biopharma	1	0	10	2	3.00

Genmab A/S presently has a consensus target price of $53.61, indicating a potential downside of 0.91%. Sutro Biopharma has a consensus target price of $49.50, indicating a potential upside of 383.87%. Given Sutro Biopharma’s stronger consensus rating and higher probable upside, analysts clearly believe Sutro Biopharma is more favorable than Genmab A/S.

Institutional and Insider Ownership

7.1% of Genmab A/S shares are held by institutional investors. Comparatively, 97.0% of Sutro Biopharma shares are held by institutional investors. 1.5% of Genmab A/S shares are held by insiders. Comparatively, 1.8% of Sutro Biopharma shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Genmab A/S beats Sutro Biopharma on 8 of the 15 factors compared between the two stocks.

About Genmab A/S

Genmab A/S is a biotechnology company founded in 1999 and headquartered in Copenhagen, Denmark. It discovers and develops antibody-based medicines, with a focus on cancer and other serious diseases. The company develops treatments independently and with pharmaceutical partners. Its collaborations have resulted in medicines including daratumumab (Darzalex), developed with Johnson & Johnson, and epcoritamab (Epkinly), developed with AbbVie. Genmab also advances a pipeline of antibody-based therapies and uses proprietary technologies to design and engineer therapeutic antibodies.

About Sutro Biopharma

Sutro Biopharma, Inc. is a clinical-stage biotechnology company focused on developing medicines for cancer and other serious diseases. The company uses its proprietary XpressCF cell-free protein synthesis platform to design and manufacture targeted biologic therapies, including antibody-drug conjugates (ADCs) and cancer immunotherapies. Sutro’s research programs have included luveltamab tazevibulin, also known as STRO-002, a folate receptor alpha-targeted ADC being investigated for ovarian and endometrial cancers.