Reviewing Anacor Pharmaceuticals (ANAC) & Sorrento Tech (ROKA)

Anacor Pharmaceuticals (NASDAQ: ANAC) and Sorrento Tech (NASDAQ:ROKA) are both healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Valuation and Earnings

This table compares Anacor Pharmaceuticals and Sorrento Tech’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Anacor Pharmaceuticals N/A N/A N/A ($1.45) -68.32
Sorrento Tech $7.24 million 0.45 -$30.78 million ($8.79) -0.07

Anacor Pharmaceuticals has higher earnings, but lower revenue than Sorrento Tech. Anacor Pharmaceuticals is trading at a lower price-to-earnings ratio than Sorrento Tech, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Anacor Pharmaceuticals and Sorrento Tech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Anacor Pharmaceuticals -92.08% -133.71% -38.09%
Sorrento Tech 3.30% 2.05% 1.00%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Anacor Pharmaceuticals and Sorrento Tech, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anacor Pharmaceuticals 0 0 0 0 N/A
Sorrento Tech 0 0 0 0 N/A

Institutional & Insider Ownership

48.1% of Sorrento Tech shares are held by institutional investors. 29.2% of Sorrento Tech shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Anacor Pharmaceuticals has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, Sorrento Tech has a beta of 2.22, suggesting that its stock price is 122% more volatile than the S&P 500.

Summary

Sorrento Tech beats Anacor Pharmaceuticals on 8 of the 9 factors compared between the two stocks.

Anacor Pharmaceuticals Company Profile

Anacor Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on discovering, developing and commercializing small-molecule therapeutics derived from its boron chemistry platform. Its lead product development candidate is crisaborole topical ointment, approximately 2%, a non-steroidal topical anti-inflammatory phosphodiesterase-4 (PDE-4) inhibitor in development for the treatment of mild-to-moderate atopic dermatitis and psoriasis. Its product, KERYDIN (tavaborole) topical solution, approximately 5%, is an oxaborole antifungal approved by the United States Food and Drug Administration (FDA) for the topical treatment of onychomycosis of the toenails. It also has a pipeline of other internally discovered topical and systemic boron-based compounds in early-stages of research and development, which include AN3365. Its compound, AN5568 (SCYX-7158), is licensed to Drugs for Neglected Diseases initiative (DNDi) for the treatment of human African trypanosomiasis.

Sorrento Tech Company Profile

Sorrento Tech, Inc., formerly Roka Bioscience, Inc., is a molecular diagnostics company. The Company is focused on the development and commercialization of molecular assay technologies for the detection of foodborne pathogens under the Atlas brand name. The Company offers Atlas Detection Assays and Atlas instrument in the North American food safety testing market and has rights to develop and commercialize its molecular testing solutions for a range of other industrial applications. The detection of foodborne pathogens is accomplished using culture-based assays, immunochemical-based assays and molecular-based assays. The Company sells its Atlas Detection Assays and related consumable supplies for use with its Atlas instruments. The Company’s Atlas instrument is an automated molecular diagnostic testing and a sample-in-result-out instrument that eliminates the need for batch processing and automates all aspects of molecular diagnostic testing on a single, integrated platform.

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