Sutro Biopharma (NASDAQ:STRO – Get Free Report) and Cardio Diagnostics (NASDAQ:CDIO – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.
Profitability
This table compares Sutro Biopharma and Cardio Diagnostics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sutro Biopharma | -395.25% | N/A | -88.12% |
| Cardio Diagnostics | -43,133.33% | -82.28% | -76.03% |
Earnings and Valuation
This table compares Sutro Biopharma and Cardio Diagnostics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sutro Biopharma | $45.70 million | 7.37 | -$191.09 million | ($11.97) | -1.70 |
| Cardio Diagnostics | $10,000.00 | 547.60 | -$6.50 million | ($2.92) | -0.63 |
Cardio Diagnostics has lower revenue, but higher earnings than Sutro Biopharma. Sutro Biopharma is trading at a lower price-to-earnings ratio than Cardio Diagnostics, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Sutro Biopharma has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500. Comparatively, Cardio Diagnostics has a beta of 2.28, suggesting that its share price is 128% more volatile than the S&P 500.
Insider and Institutional Ownership
97.0% of Sutro Biopharma shares are owned by institutional investors. Comparatively, 8.1% of Cardio Diagnostics shares are owned by institutional investors. 1.8% of Sutro Biopharma shares are owned by insiders. Comparatively, 9.0% of Cardio Diagnostics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Sutro Biopharma and Cardio Diagnostics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sutro Biopharma | 1 | 0 | 10 | 2 | 3.00 |
| Cardio Diagnostics | 1 | 0 | 0 | 0 | 1.00 |
Sutro Biopharma currently has a consensus price target of $47.30, suggesting a potential upside of 132.78%. Given Sutro Biopharma’s stronger consensus rating and higher probable upside, equities analysts plainly believe Sutro Biopharma is more favorable than Cardio Diagnostics.
Summary
Sutro Biopharma beats Cardio Diagnostics on 8 of the 15 factors compared between the two stocks.
About Sutro Biopharma
Sutro Biopharma, Inc. operates as a clinical-stage oncology company. The company develops site-specific and novel-format antibody drug conjugates (ADCs) that enables its proprietary integrated cell-free protein synthesis platform, XpressCF and XpressCF+. Its product candidates include STRO-002, an ADC directed against folate receptor-alpha, which is in Phase II/III clinical trials for patients with ovarian and endometrial cancers; VAX-24 and Vax-31 pneumococcal conjugate vaccine candidates that is in Phase II/III clinical trials for the treatment of invasive pneumococcal disease; and MK-1484, a distinct cytokine derivative molecule that is in Phase I clinical study for the treatment of cancer. The company's pre-clinical product candidates include STRO-003, an ADC directed against an anti-receptor tyrosine kinase-like orphan receptor 1 (ROR1) for the treatment of solid tumors and hematological cancers; and STRO-004, a tissue factor (TF) targeting ADC for the treatment of TF-expressing solid tumors, including cervical, lung, and breast cancer. Sutro Biopharma, Inc. has collaboration and license agreements with Merck Sharp & Dohme Corporation to develop research programs focusing on cytokine derivatives for cancer and autoimmune disorders; Vaxcyte to discover and develop vaccine candidates for the treatment or prophylaxis of infectious diseases; Tasly Biopharmaceuticals Co., Ltd. to develop and commercialize STRO-002 in Greater China; EMD Serono to develop ADCs for multiple cancer targets; and Astellas Pharma Inc. to develop immunostimulatory ADC. The company was formerly known as Fundamental Applied Biology, Inc. Sutro Biopharma, Inc. was incorporated in 2003 and is headquartered in South San Francisco, California.
About Cardio Diagnostics
Cardio Diagnostics Holdings, Inc. develops and commercializes epigenetics-based clinical tests for cardiovascular disease. It offers Epi+Gen CHD, a three-year symptomatic coronary heart disease (CHD) risk assessment test targeting CHD events, including heart attacks; and PrecisionCHD, an integrated epigenetic-genetic blood test for the early detection of coronary heart disease. Cardio Diagnostics Holdings, Inc. was founded in 2017 and is headquartered in Chicago, Illinois.
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