Critical Comparison: Seres Therapeutics (NASDAQ:MCRB) & Sarepta Therapeutics (NASDAQ:SRPT)

Seres Therapeutics (NASDAQ:MCRB – Get Free Report) and Sarepta Therapeutics (NASDAQ:SRPT – Get Free Report) are both small-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Profitability

This table compares Seres Therapeutics and Sarepta Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Seres Therapeutics -1,192.94% -114.82% -34.15%
Sarepta Therapeutics -13.48% -1.60% -0.66%

Analyst Ratings

This is a summary of recent ratings and target prices for Seres Therapeutics and Sarepta Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seres Therapeutics 1 1 2 0 2.25
Sarepta Therapeutics 8 6 7 0 1.95

Seres Therapeutics presently has a consensus price target of $17.00, indicating a potential upside of 602.48%. Sarepta Therapeutics has a consensus price target of $22.59, indicating a potential upside of 34.21%. Given Seres Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Seres Therapeutics is more favorable than Sarepta Therapeutics.

Risk and Volatility

Seres Therapeutics has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500. Comparatively, Sarepta Therapeutics has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.

Institutional & Insider Ownership

59.3% of Seres Therapeutics shares are owned by institutional investors. Comparatively, 86.7% of Sarepta Therapeutics shares are owned by institutional investors. 5.2% of Seres Therapeutics shares are owned by insiders. Comparatively, 6.9% of Sarepta Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Seres Therapeutics and Sarepta Therapeutics”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Seres Therapeutics $790,000.00 30.79 $5.70 million ($2.43) -1.00
Sarepta Therapeutics $2.20 billion 0.81 -$713.41 million ($2.90) -5.80

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

Summary

Sarepta Therapeutics beats Seres Therapeutics on 8 of the 13 factors compared between the two stocks.

About Seres Therapeutics

(Get Free Report)

Seres Therapeutics, Inc., a microbiome therapeutics company, develop microbiome therapeutics to treat the modulation of the colonic microbiome. It develops a novel class of biological drugs that are designed to treat by modulating the microbiome to restore health by repairing the function of a disrupted microbiome to a non-disease state. The company’s lead product candidate is VOWST, an oral microbiome therapeutic that has completed Phase III clinical trial for the treatment of recurrent Clostridioides difficile infection. Its product pipeline also includes SER-155, an investigational oral fermented microbiome therapeutic which is in Phase 1b clinical trials for the treatment of gastrointestinal infections, bacteremia, and graft versus host disease in immunocompromised patients including patients receiving allogeneic hematopoietic stem cell transplantation. In addition, the company engages in the development of SER-287 which is in Phase 2b and SER-301 that is in Phase 1b to treat ulcerative colitis. Further, it has license Agreement with NHSc Rx License GmbH for the therapeutic products based on the microbiome technology, which includes VOWST product candidate, which is developed for the treatment of CDI and recurrent CDI; and collaboration license agreement with Société des Produits Nestlé S.A. (Nestlé) for the development and commercialization of certain product candidates for the treatment and management of CDI and inflammatory bowel disease including UC and Crohn’s disease. The company was formerly known as Seres Health, Inc. and changed its name to Seres Therapeutics, Inc. in May 2015. Seres Therapeutics, Inc. was incorporated in 2010 and is headquartered in Cambridge, Massachusetts.

About Sarepta Therapeutics

(Get Free Report)

Sarepta Therapeutics, Inc., a commercial-stage biopharmaceutical company, focuses on the discovery and development of RNA-targeted therapeutics, gene therapies, and other genetic therapeutic modalities for the treatment of rare diseases. It offers EXONDYS 51 injection to treat duchenne muscular dystrophy (duchenne) in patients with confirmed mutation of the dystrophin gene that is amenable to exon 51 skipping; VYONDYS 53 for the treatment of duchenne in patients with confirmed mutation of the dystrophin gene that is amenable to exon 53 skipping; AMONDYS 45 for the treatment of duchenne in patients with confirmed mutation of the dystrophin gene; and ELEVIDYS, an adeno-associated virus based gene therapy for the treatment of ambulatory pediatric patients aged 4 through 5 years with duchenne with a confirmed mutation in the duchenne gene. The company is also developing SRP-5051, a peptide conjugated PMO that binds exon 51 of dystrophin pre-mRNA; and SRP-9003, a limb-girdle muscular dystrophies gene therapy program. It has collaboration and license agreements with F. Hoffman-La Roche Ltd; Nationwide Children's Hospital; Genevant Sciences; University of Florida; Dyno Therapeutics; Hansa Biopharma; Duke University; Genethon; and StrideBio. The company was incorporated in 1980 and is headquartered in Cambridge, Massachusetts.

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