Critical Contrast: Summit Therapeutics (NASDAQ:SMMT) versus Stoke Therapeutics (NASDAQ:STOK)

Stoke Therapeutics (NASDAQ:STOK) and Summit Therapeutics (NASDAQ:SMMT) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Stoke Therapeutics and Summit Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stoke Therapeutics	0	1	7	0	2.88
Summit Therapeutics	0	0	2	0	3.00

Stoke Therapeutics presently has a consensus target price of $20.57, indicating a potential upside of 39.75%. Summit Therapeutics has a consensus target price of $13.50, indicating a potential upside of 26.64%. Given Stoke Therapeutics’ higher possible upside, analysts plainly believe Stoke Therapeutics is more favorable than Summit Therapeutics.

Profitability

This table compares Stoke Therapeutics and Summit Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stoke Therapeutics	N/A	-65.47%	-46.66%
Summit Therapeutics	N/A	-125.07%	-51.02%

Institutional & Insider Ownership

4.6% of Summit Therapeutics shares are owned by institutional investors. 11.3% of Stoke Therapeutics shares are owned by insiders. Comparatively, 88.3% of Summit Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Stoke Therapeutics and Summit Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stoke Therapeutics	$8.78 million	87.38	-$104.70 million	($2.41)	-6.11
Summit Therapeutics	$700,000.00	10,690.15	-$614.93 million	($0.16)	-66.63

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

Volatility & Risk

Stoke Therapeutics has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Summit Therapeutics has a beta of -0.97, suggesting that its share price is 197% less volatile than the S&P 500.

Summary

Stoke Therapeutics beats Summit Therapeutics on 8 of the 13 factors compared between the two stocks.

About Stoke Therapeutics

Stoke Therapeutics, Inc., an early-stage biopharmaceutical company, develops medicines to treat the underlying causes of severe genetic diseases in the United States. The company utilizes its proprietary targeted augmentation of nuclear gene output to develop antisense oligonucleotides to selectively restore protein levels. Its lead clinical candidate is STK-002, which is in preclinical stage for the treatment of autosomal dominant optic atrophy. The company also develops STK-001, which is in phase I/II clinical trial to treat Dravet syndrome; and programs focused on multiple targets, including haploinsufficiency diseases of the central nervous system and eye. The company has a license and collaboration agreement with Acadia Pharmaceuticals Inc. for the discovery, development, and commercialization of novel RNA-based medicines for the treatment of severe and rare genetic neurodevelopmental diseases of the central nervous system. The company was formerly known as ASOthera Pharmaceuticals, Inc. and changed its name to Stoke Therapeutics, Inc. in May 2016. Stoke Therapeutics, Inc. was incorporated in 2014 and is headquartered in Bedford, Massachusetts.

About Summit Therapeutics

Summit Therapeutics Inc., a biopharmaceutical company, focuses on discovery, development, and commercialization of patient, physician, caregiver, and societal friendly medicinal therapies in the United States, and the United Kingdom. The company's lead development candidate is Ivonescimab, a bispecific antibody for immunotherapy through blockade of PD-1 with the anti-angiogenesis; and anti-infectives portfolio includes SMT-738, a novel class of precision antibiotics for the treatment of multidrug resistant infections, which primarily includes carbapenem-resistant Enterobacteriaceae infections. It has a collaboration and license agreement with Akeso, Inc. and its affiliates to develop and commercialize ivonescimab. The company was founded in 2003 and is headquartered in Miami, Florida.