Sorrento Therapeutics (NASDAQ:SRNE) and Inhibikase Therapeutics (NYSE:IKT) Critical Review

Inhibikase Therapeutics (NYSE:IKT) and Sorrento Therapeutics (NASDAQ:SRNE) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Volatility & Risk

Inhibikase Therapeutics has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Sorrento Therapeutics has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inhibikase Therapeutics	N/A	N/A	-$19.03 million	($0.39)	-4.41
Sorrento Therapeutics	$60.32 million	0.02	-$572.84 million	($0.63)	0.00

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Inhibikase Therapeutics	N/A	-350.63%	-201.82%
Sorrento Therapeutics	N/A	N/A	N/A

Institutional & Insider Ownership

3.8% of Inhibikase Therapeutics shares are held by institutional investors. Comparatively, 0.0% of Sorrento Therapeutics shares are held by institutional investors. 7.3% of Inhibikase Therapeutics 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, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Inhibikase Therapeutics and Sorrento Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inhibikase Therapeutics	0	1	1	0	2.50
Sorrento Therapeutics	0	0	0	0	0.00

Inhibikase Therapeutics currently has a consensus price target of $4.00, suggesting a potential upside of 132.56%. Given Inhibikase Therapeutics’ stronger consensus rating and higher probable upside, research analysts clearly believe Inhibikase Therapeutics is more favorable than Sorrento Therapeutics.

Summary

Inhibikase Therapeutics beats Sorrento Therapeutics on 7 of the 12 factors compared between the two stocks.

About Inhibikase Therapeutics

Inhibikase Therapeutics, Inc., a clinical-stage pharmaceutical company, develops therapeutics for Parkinson’s disease and related disorders. Its lead product candidate is IkT-148009, a non-receptor Abelson tyrosine kinase inhibitor, which is in Phase 2a clinical trials to the treatment of Parkinson’s disease and gastrointestinal tract. The company is also developing IkT-001Pro, a prodrug of the anticancer agent imatinib mesylate to treat stable phase chronic myelogenous leukemia. Inhibikase Therapeutics, Inc. has research and development collaborations with Johns Hopkins University, Arizona State University, and Michigan State University; and a collaborative research and development agreement with Sphaera Pharma Pte. Ltd. The company was founded in 2008 and is headquartered in Atlanta, Georgia.

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.