Scilex (NASDAQ:SCLX – Get Free Report) and Sangamo Therapeutics (NASDAQ:SGMO – Get Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Scilex and Sangamo Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Scilex | 0 | 0 | 2 | 0 | 3.00 |
| Sangamo Therapeutics | 1 | 3 | 3 | 0 | 2.29 |
Scilex presently has a consensus price target of $8.00, suggesting a potential upside of 740.87%. Sangamo Therapeutics has a consensus price target of $4.93, suggesting a potential upside of 865.50%. Given Sangamo Therapeutics’ higher probable upside, analysts plainly believe Sangamo Therapeutics is more favorable than Scilex.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Scilex | $46.74 million | 3.38 | -$114.33 million | ($1.29) | -0.74 |
| Sangamo Therapeutics | $176.23 million | 0.52 | -$257.83 million | ($1.47) | -0.35 |
Scilex has higher earnings, but lower revenue than Sangamo Therapeutics. Scilex is trading at a lower price-to-earnings ratio than Sangamo Therapeutics, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
69.7% of Scilex shares are held by institutional investors. Comparatively, 56.9% of Sangamo Therapeutics shares are held by institutional investors. 8.7% of Scilex shares are held by company insiders. Comparatively, 3.0% of Sangamo Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Scilex has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Sangamo Therapeutics has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.
Profitability
This table compares Scilex and Sangamo Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Scilex | -244.60% | N/A | -112.17% |
| Sangamo Therapeutics | -146.30% | -82.17% | -56.21% |
About Scilex
Scilex Holding Company focuses on acquiring, developing, and commercializing non-opioid pain management products for the treatment of acute and chronic pain. Its commercial products include ZTlido (lidocaine topical system) 1.8% (ZTlido), a prescription lidocaine topical product for the relief of neuropathic pain associated with postherpetic neuralgia (PHN), which is a form of post-shingles nerve pain; ELYXYB, a ready-to-use oral solution for the acute treatment of migraine with or without aura in adults; and GLOPERBA, a liquid oral version of the anti-gout medicine colchicine indicated for the prophylaxis of painful gout flares in adults. The company is also developing three product candidates, including SP-102 (10 mg dexamethasone sodium phosphate viscous gel) (SEMDEXA), a novel viscous gel formulation of a used corticosteroid for epidural injections, which has completed a Phase 3 study to treat lumbosacral radicular pain or sciatica; SP-103 (lidocaine topical system) 5.4% (SP-103), a formulation of ZTlido for the treatment of chronic neck pain and low back pain (LBP) that has completed a Phase 2 trial; and SP-104 (4.5 mg low-dose naltrexone hydrochloride delayed-release capsules) (SP-104), a novel low-dose delayed-release naltrexone hydrochloride, which has completed Phase 1 trials for the treatment of fibromyalgia. The company is headquartered in Palo Alto, California.
About Sangamo Therapeutics
Sangamo Therapeutics, Inc., a clinical-stage genomic medicine company, focuses on translating science into medicines that transform the lives of patients and families afflicted with serious diseases in the United States. The company's clinical-stage product candidates are ST-920, a gene therapy product candidate, which is in Phase 1/2 clinical study for the treatment of Fabry disease; TX200, a chimeric antigen receptor engineered regulatory T cell (CAR-Treg) therapy product candidate that is in Phase 1/2 clinical study for the prevention of immune-mediated rejection in HLA-A2 mismatched kidney transplantation; SB-525, a gene therapy product candidate, which is in Phase 3 clinical trial for the treatment of moderately severe to severe hemophilia A; BIVV003, a zinc finger nuclease gene-edited cell therapy product candidate that is in Phase 1/2 PRECIZN-1 clinical study for the treatment of sickle cell disease. Its preclinical development products focus on CAR-Treg cell therapies for autoimmune disorders and genome engineering for neurological diseases. Sangamo Therapeutics, Inc. has collaborative and strategic partnerships with Biogen MA, Inc.; Kite Pharma, Inc.; Pfizer Inc.; Sanofi S.A.; Novartis Institutes for BioMedical Research, Inc.; Shire International GmbH; Dow AgroSciences LLC; Sigma-Aldrich Corporation; Genentech, Inc.; Open Monoclonal Technology, Inc.; and California Institute for Regenerative Medicine. The company was formerly known as Sangamo BioSciences, Inc. and changed its name to Sangamo Therapeutics, Inc. in January 2017. Sangamo Therapeutics, Inc. was incorporated in 1995 and is headquartered in Richmond, California.
Receive News & Ratings for Scilex Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Scilex and related companies with MarketBeat.com's FREE daily email newsletter.
