Analyzing Sarepta Therapeutics (SRPT) & Spero Therapeutics (NASDAQ:SPRO)

Sarepta Therapeutics (NASDAQ:SRPT) and Spero Therapeutics (NASDAQ:SPRO) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Sarepta Therapeutics -120.22% -36.73% -21.52%
Spero Therapeutics -1,050.48% -43.63% -39.79%

Valuation and Earnings

This table compares Sarepta Therapeutics 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
Sarepta Therapeutics $301.03 million 28.70 -$361.92 million ($5.46) -22.20
Spero Therapeutics $3.97 million 52.34 -$41.66 million ($2.60) -4.64

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

Insider & Institutional Ownership

95.6% of Sarepta Therapeutics shares are owned by institutional investors. Comparatively, 46.4% of Spero Therapeutics shares are owned by institutional investors. 7.9% of Sarepta Therapeutics shares are owned by company insiders. Comparatively, 26.9% of Spero Therapeutics shares are owned by company 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.

Volatility & Risk

Sarepta Therapeutics has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500. Comparatively, Spero Therapeutics has a beta of 2.97, suggesting that its stock price is 197% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Sarepta Therapeutics and Spero Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sarepta Therapeutics 0 2 26 0 2.93
Spero Therapeutics 1 0 3 0 2.50

Sarepta Therapeutics presently has a consensus price target of $195.05, indicating a potential upside of 60.93%. Spero Therapeutics has a consensus price target of $23.50, indicating a potential upside of 94.70%. Given Spero Therapeutics’ higher possible upside, analysts plainly believe Spero Therapeutics is more favorable than Sarepta Therapeutics.

About Sarepta Therapeutics

Sarepta Therapeutics, Inc. focuses on the discovery and development of RNA-based therapeutics, gene therapy, and other genetic medicine approaches for the treatment of rare diseases. The company offers EXONDYS 51, a disease-modifying therapy for duchenne muscular dystrophy (DMD). Its products pipeline include Golodirsen, a product candidate that binds to exon 53 of dystrophin pre-mRNA, which results in exclusion or skipping of exon during mRNA processing in patients with genetic mutations; and Casimersen, a product candidate that uses phosphorodiamidate morpholino oligomer (PMO) chemistry and exon-skipping technology to skip exon 45 of the DMD gene. In addition, the company's pipeline comprise SRP-5051, a peptide conjugated PMO that binds to exon 51 of dystrophin pre-mRNA. It has collaboration agreements with Nationwide Children's Hospital to advance micro-dystrophin gene therapy program under the research and license option agreement; Galgt2, a gene therapy program for the treatment of DMD; and Neutrophin 3, a gene therapy program to treat Charcot-Marie-Tooth neuropathies. The company also has a license agreement with Lysogene to develop LYS-SAF302, a gene therapy for mucopolysaccharidosis IIIA; a license and option agreement with Lacerta to develop treatments for CNS-targeted and lysosomal storage diseases; and research collaboration and option agreement with Genethon to develop micro-dystrophin gene therapy products. In addition, it has a research agreement with Duke University to advance gene editing CRISPR/Cas9 technology for restoring dystrophin expression; a collaboration agreement with Summit (Oxford) Ltd. to commercialize products in Summit's utrophin modulator pipeline; a strategic collaboration with Paragon Bioservices; and a strategic collaboration with CENTOGENE for the identification of patients with DMD in the Middle East and North Africa region. Sarepta Therapeutics, Inc. was founded in 1980 and is headquartered in Cambridge, Massachusetts.

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 in the United States. Its product candidate includes SPR994, an oral carbapenem-class antibiotic to treat MDR gram-negative infections for adults; and SPR741, which is in Phase Ib clinical trial to treat MDR gram-negative infections in the hospital setting. The company also develops SPR206, an agent that is in preclinical development stage to disrupt the outer membrane of gram-negative bacteria; and SPR720, an oral antibiotic, which is in preclinical development stage for the treatment of pulmonary non-tuberculous mycobacterial infections. Spero Therapeutics, Inc. has collaboration with Everest Medicines to develop, manufacture, and commercialize SPR206 in Greater China, South Korea, and Southeast Asian countries, as well as has option to rights to SPR741 in the territory. The company was founded in 2013 and is headquartered in Cambridge, Massachusetts.

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