Sutro Biopharma (NASDAQ:STRO – Get Rating) and Cardiol Therapeutics (NASDAQ:CRDL – Get Rating) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.
Earnings and Valuation
This table compares Sutro Biopharma and Cardiol Therapeutics’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sutro Biopharma | $67.77 million | 4.80 | -$119.20 million | ($2.38) | -2.27 |
| Cardiol Therapeutics | $60,000.00 | 629.83 | -$23.79 million | ($0.35) | -1.69 |
Cardiol Therapeutics has lower revenue, but higher earnings than Sutro Biopharma. Sutro Biopharma is trading at a lower price-to-earnings ratio than Cardiol Therapeutics, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Institutional and Insider Ownership
87.6% of Sutro Biopharma shares are held by institutional investors. Comparatively, 7.5% of Cardiol Therapeutics shares are held by institutional investors. 7.4% of Sutro Biopharma shares are held by insiders. Comparatively, 5.3% of Cardiol Therapeutics shares are held 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.
Profitability
This table compares Sutro Biopharma and Cardiol Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sutro Biopharma | -174.57% | -59.26% | -32.13% |
| Cardiol Therapeutics | N/A | -52.32% | -44.58% |
Analyst Ratings
This is a summary of recent recommendations and price targets for Sutro Biopharma and Cardiol Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sutro Biopharma | 0 | 1 | 5 | 0 | 2.83 |
| Cardiol Therapeutics | 0 | 0 | 0 | 0 | N/A |
Sutro Biopharma presently has a consensus price target of $17.33, indicating a potential upside of 220.39%. Cardiol Therapeutics has a consensus price target of $1.00, indicating a potential upside of 69.46%. Given Sutro Biopharma’s higher possible upside, equities analysts clearly believe Sutro Biopharma is more favorable than Cardiol Therapeutics.
Summary
Sutro Biopharma beats Cardiol Therapeutics on 7 of the 13 factors compared between the two stocks.
About Sutro Biopharma
Sutro Biopharma Inc. engages in the drug discovery, development and manufacture of pharmaceutical products. It focuses on the next generation cancer and autoimmune therapeutics. The company was founded by James R. Swartz and Sutanto Widjaja on April 21, 2003 and is headquartered in South San Francisco, CA.
About Cardiol Therapeutics
Cardiol Therapeutics, Inc. is a clinical-stage life sciences company focused on the research and clinical of anti-inflammatory and anti-fibrotic therapies for the treatment of heart disease. Its lead product candidate, CardiolRx, is a pharmaceutically manufactured oral cannabidiol formulation that is being clinically developed for use in heart diseases. The firm is conducting clinical studies to evaluate the efficacy and safety of CardiolRx in diseases affecting the heart: a Phase II multi-national, randomized, double-blind, placebo-controlled trial (the “”ARCHER”” trial) in acute myocarditis; and a Phase II multi-center open-label pilot study in recurrent pericarditis. It is also involved in developing a novel subcutaneously administered drug formulation of cannabidiol intended for use in heart failure. The company was founded by David Elsley, Eldon Smith, and Anthony Bolton on January 19, 2017 and is headquartered in Oakville, Canada.
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