Sernova (OTCMKTS:SEOVF – Get Free Report) and Spero Therapeutics (NASDAQ:SPRO – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Analyst Ratings
This is a summary of recent ratings and target prices for Sernova and Spero Therapeutics, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Sernova | 0 | 1 | 0 | 0 | 2.00 |
Spero Therapeutics | 0 | 0 | 2 | 0 | 3.00 |
Sernova currently has a consensus target price of $1.50, indicating a potential upside of 648.13%. Spero Therapeutics has a consensus target price of $7.00, indicating a potential upside of 386.11%. Given Sernova’s higher possible upside, research analysts clearly believe Sernova is more favorable than Spero Therapeutics.
Profitability
Net Margins | Return on Equity | Return on Assets | |
Sernova | N/A | -479.95% | -192.17% |
Spero Therapeutics | 21.09% | 35.42% | 19.85% |
Volatility and Risk
Sernova has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Spero Therapeutics has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.
Institutional & Insider Ownership
25.6% of Spero Therapeutics shares are held by institutional investors. 4.5% of Spero Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Sernova and Spero Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Sernova | N/A | N/A | -$28.91 million | ($0.09) | -2.23 |
Spero Therapeutics | $103.78 million | 0.75 | $22.81 million | $0.43 | 3.35 |
Spero Therapeutics has higher revenue and earnings than Sernova. Sernova is trading at a lower price-to-earnings ratio than Spero Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
Spero Therapeutics beats Sernova on 11 of the 13 factors compared between the two stocks.
About Sernova
Sernova Corp. operates as a clinical-stage regenerative medicine therapeutics company in Canada. The company focuses on the development and commercialization of regenerative medicine therapeutics, including its proprietary Cell Pouch and associated technologies consisting of therapeutic cells and local cellular immune protection. Its Cell Pouch is a novel implantable and scalable medical device which forms a natural environment in the body for the housing and long-term survival and function of therapeutic cells, which release necessary proteins or factors missing from the body to treat chronic diseases as an alternative to daily administration of drugs. Sernova Corp. has a research agreement with the University of Miami to advance the development of Conformal Coating Technology in combination with therapeutic cells within Cell Pouch. Sernova Corp. was incorporated in 1998 and is headquartered in London, Canada.
About Spero Therapeutics
Spero Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on identifying, developing, and commercializing novel treatments for multi-drug resistant (MDR) bacterial infections and rare diseases in the United States. The company's product candidates include tebipenem pivoxil hydrobromide (HBr), an oral carbapenem-class antibiotic to treat complicated urinary tract infections, including pyelonephritis for adults; SPR206, an intravenous-administered antibiotic against MDR Gram-negative pathogens comprising carbapenem-resistant enterobacterales (CRE), acinetobacter baumannii, and pseudomonas aeruginosa, as well as negative bacterial infections in the hospital setting; and SPR720, a novel oral antibiotic agent for the treatment of non-tuberculous mycobacterial pulmonary disease. It has license agreement with Meiji Seika Pharma Co., Ltd. to support the development of tebipenem HBr; Everest Medicines to develop, manufacture, and commercialize SPR206 in Greater China, South Korea, and Southeast Asian countries; and Vertex Pharmaceuticals Incorporated for patents relating to SPR720, as well as SPR719, an active metabolite. Spero Therapeutics, Inc. was founded in 2013 and is headquartered in Cambridge, Massachusetts.
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