Contrasting Cullinan Therapeutics (NASDAQ:CGEM) & Sorrento Therapeutics (NASDAQ:SRNE)

Cullinan Therapeutics (NASDAQ:CGEM) and Sorrento Therapeutics (NASDAQ:SRNE) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.

Insider & Institutional Ownership

86.3% of Cullinan Therapeutics shares are owned by institutional investors. Comparatively, 0.0% of Sorrento Therapeutics shares are owned by institutional investors. 6.1% of Cullinan Therapeutics shares are owned by insiders. Comparatively, 2.6% of Sorrento Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Cullinan Therapeutics has a beta of -0.12, indicating that its stock price is 112% less volatile than the S&P 500. Comparatively, Sorrento Therapeutics has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.

Profitability

This table compares Cullinan Therapeutics and Sorrento Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cullinan Therapeutics	N/A	-28.65%	-27.14%
Sorrento Therapeutics	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations for Cullinan Therapeutics and Sorrento Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cullinan Therapeutics	0	0	6	0	3.00
Sorrento Therapeutics	0	0	0	0	N/A

Cullinan Therapeutics currently has a consensus price target of $32.00, suggesting a potential upside of 94.53%. Given Cullinan Therapeutics’ higher probable upside, analysts plainly believe Cullinan Therapeutics is more favorable than Sorrento Therapeutics.

Valuation & Earnings

This table compares Cullinan Therapeutics and Sorrento Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cullinan Therapeutics	$18.94 million	50.05	-$153.16 million	($3.13)	-5.26
Sorrento Therapeutics	$60.32 million	0.09	-$572.84 million	N/A	N/A

Cullinan Therapeutics has higher earnings, but lower revenue than Sorrento Therapeutics.

Summary

Cullinan Therapeutics beats Sorrento Therapeutics on 6 of the 10 factors compared between the two stocks.

About Cullinan Therapeutics

Cullinan Therapeutics, Inc., a biopharmaceutical company, focuses on developing oncology therapies for cancer patients in the United States. The company's lead program comprises CLN-619, a monoclonal antibody that is in Phase I clinical trial for the treatment of solid tumors. Its development portfolio also includes CLN-049, a humanized bispecific antibody that is in Phase I clinical trial for the treatment of acute myeloid leukemia or myelodysplastic syndrome; CLN-418, a human bispecific immune activator that is in Phase 1 clinical trial for the treatment of multiple solid tumors; and Zipalertinib, a bioavailable small-molecule for treating patients with non-small cell lung cancer. In addition, the company's development products comprise CLN-617, a fusion protein for the treatment of solid tumors; and CLN-978, a T cell engaging antibody for the treatment relapsed/refractory B-cell non-Hodgkin lymphoma. It has license and collaboration agreement with Adimab, LLC to discover and/or optimize antibodies; Harbour BioMed US Inc. for the development, manufacturing, and commercialization of CLN-418; and co-development agreement with Taiho Pharmaceutical Co., Ltd to develop Zipalertinib. Cullinan Therapeutics, Inc. was formerly known as Cullinan Oncology, Inc. and changed its name to Cullinan Therapeutics, Inc. in April 2024. Cullinan Therapeutics, Inc. was incorporated in 2016 and is headquartered in Cambridge, Massachusetts.

About Sorrento Therapeutics

Sorrento Therapeutics, Inc., a clinical and commercial stage biopharmaceutical company, develops a portfolio of next-generation treatments for three therapeutic areas: cancer, infectious disease,and pain. It operates through two segments, Sorrento Therapeutics and Scilex. The company provides cancer therapeutic by leveraging its proprietary G-MAB antibody library and targeted delivery modalities, which include chimeric antigen receptor T-cell therapy (CAR-T), dimeric antigen receptor T-cell therapy, and antibody drug conjugate, as well as bispecific antibody approach; and Sofusa, a drug delivery technology that deliver biologic directly into the lymphatic system. Its clinical programs in development include anti-CD38 CAR-T therapy for the treatment of multiple myeloma, as well as for amyloidosis and graft versus host disease. The company develops resiniferatoxin, a non-opioid-based TRPV1 agonist neurotoxin for late stage cancer and osteoarthritis pain treatment; and ZTlido, a lidocaine topical system for the treatment of post-herpetic neuralgia. It engages in the development of SEMDEXA, an injectable viscous gel formulation, which is Phase III trial for the treatment of sciatica, a pathology of low back pain; SP-103, an investigational non-aqueous lidocaine topical system undergoing clinical development in chronic low back pain condition; and SP-104, a novel low-dose delayed-release naltrexone hydrochloride formulation for the treatment of fibromyalgia. It has collaboration with SmartPharm Therapeutics Inc. to develop gene-encoded antibody vaccine to protect against COVID-19; and Mayo Clinic for Phase Ib pilot study using sofusa lymphatic drug delivery technology to deliver Ipilimumab in patient with melanoma. The company was founded in 2006 and is based in San Diego, California. On February 13, 2023, Sorrento Therapeutics, Inc., along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. The plan was later approved as Chapter 11 liquidation on November 30, 2023.