Analyzing TG Therapeutics (NASDAQ:TGTX) and Stoke Therapeutics (NASDAQ:STOK)

Stoke Therapeutics (NASDAQ:STOK) and TG Therapeutics (NASDAQ:TGTX) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Risk and Volatility

Stoke Therapeutics has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, TG Therapeutics has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500.

Institutional & Insider Ownership

58.6% of TG Therapeutics shares are held by institutional investors. 9.5% of Stoke Therapeutics shares are held by insiders. Comparatively, 10.6% of TG Therapeutics shares are held by 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for Stoke Therapeutics and TG Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stoke Therapeutics	0	2	7	1	2.90
TG Therapeutics	0	2	3	1	2.83

Stoke Therapeutics currently has a consensus target price of $37.10, suggesting a potential upside of 25.93%. TG Therapeutics has a consensus target price of $50.75, suggesting a potential upside of 62.66%. Given TG Therapeutics’ higher probable upside, analysts clearly believe TG Therapeutics is more favorable than Stoke Therapeutics.

Earnings and Valuation

This table compares Stoke Therapeutics and TG Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stoke Therapeutics	$36.56 million	46.03	-$88.98 million	$0.67	43.97
TG Therapeutics	$329.00 million	15.06	$23.38 million	$2.78	11.22

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

Profitability

This table compares Stoke Therapeutics and TG Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stoke Therapeutics	19.73%	13.28%	11.40%
TG Therapeutics	84.13%	133.24%	60.43%

Summary

TG Therapeutics beats Stoke Therapeutics on 10 of the 14 factors compared between the two stocks.

About Stoke Therapeutics

Stoke Therapeutics, Inc., an early-stage biopharmaceutical company, develops medicines to treat the underlying causes of severe genetic diseases in the United States. The company utilizes its proprietary targeted augmentation of nuclear gene output to develop antisense oligonucleotides to selectively restore protein levels. Its lead clinical candidate is STK-002, which is in preclinical stage for the treatment of autosomal dominant optic atrophy. The company also develops STK-001, which is in phase I/II clinical trial to treat Dravet syndrome; and programs focused on multiple targets, including haploinsufficiency diseases of the central nervous system and eye. The company has a license and collaboration agreement with Acadia Pharmaceuticals Inc. for the discovery, development, and commercialization of novel RNA-based medicines for the treatment of severe and rare genetic neurodevelopmental diseases of the central nervous system. The company was formerly known as ASOthera Pharmaceuticals, Inc. and changed its name to Stoke Therapeutics, Inc. in May 2016. Stoke Therapeutics, Inc. was incorporated in 2014 and is headquartered in Bedford, Massachusetts.

About TG Therapeutics

TG Therapeutics, Inc., a commercial stage biopharmaceutical company, focuses on the acquisition, development, and commercialization of novel treatments for B-cell mediated diseases in the United States and internationally. It provides BRIUMVI, an anti-CD20 monoclonal antibody for the treatment of adult patients with relapsing forms of multiple sclerosis (RMS), including clinically isolated syndrome, relapsing-remitting disease, and active secondary progressive disease in adults. The company's development pipeline comprises Umbralisib, an oral inhibitor of PI3K-delta inhibitor for the treatment of adult patients with relapsed or refractory marginal zone lymphoma and follicular lymphoma; TG-1701 is an orally available and covalently bound Bruton's tyrosine kinase (BTK) inhibitor that exhibits selectivity to BTK in vitro kinase screening; and TG-1801, a bispecific CD47 and CD19 antibody. Its research pipeline includes various investigational medicines. The company has license agreements with LFB Biotechnologies S.A.S; GTC Biotherapeutics; LFB/GTC LLC; Ildong Pharmaceutical Co. Ltd.; Rhizen Pharmaceuticals, S A. for the development and commercialization of umbralisib; Jiangsu Hengrui Medicine Co.; and Novimmune SA, as well as collaboration agreement with Checkpoint Therapeutics, Inc. for the development and commercialization of anti-PD-L1 and anti-GITR antibody research programs in the field of hematological malignancies. TG Therapeutics, Inc. was incorporated in 1993 and is based in Morrisville, North Carolina.