Contrasting Sarepta Therapeutics (NASDAQ:SRPT) & AbCellera Biologics (NASDAQ:ABCL)

Sarepta Therapeutics (NASDAQ:SRPT) and AbCellera Biologics (NASDAQ:ABCL) are both healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sarepta Therapeutics	-13.48%	-1.60%	-0.66%
AbCellera Biologics	-248.83%	-17.49%	-12.36%

Earnings and Valuation

This table compares Sarepta Therapeutics and AbCellera Biologics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sarepta Therapeutics	$2.20 billion	0.86	-$713.41 million	($2.90)	-6.16
AbCellera Biologics	$75.13 million	51.22	-$146.41 million	($0.54)	-23.24

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

Institutional & Insider Ownership

86.7% of Sarepta Therapeutics shares are owned by institutional investors. Comparatively, 61.4% of AbCellera Biologics shares are owned by institutional investors. 6.9% of Sarepta Therapeutics shares are owned by insiders. Comparatively, 28.4% of AbCellera Biologics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sarepta Therapeutics	8	6	7	0	1.95
AbCellera Biologics	1	2	5	1	2.67

Sarepta Therapeutics currently has a consensus price target of $22.59, indicating a potential upside of 26.54%. AbCellera Biologics has a consensus price target of $13.38, indicating a potential upside of 6.57%. Given Sarepta Therapeutics’ higher probable upside, analysts plainly believe Sarepta Therapeutics is more favorable than AbCellera Biologics.

Risk & Volatility

Sarepta Therapeutics has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, AbCellera Biologics has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.

Summary

Sarepta Therapeutics beats AbCellera Biologics on 8 of the 15 factors compared between the two stocks.

About Sarepta Therapeutics

Sarepta Therapeutics, Inc., a commercial-stage biopharmaceutical company, focuses on the discovery and development of RNA-targeted therapeutics, gene therapies, and other genetic therapeutic modalities for the treatment of rare diseases. It offers EXONDYS 51 injection to treat duchenne muscular dystrophy (duchenne) in patients with confirmed mutation of the dystrophin gene that is amenable to exon 51 skipping; VYONDYS 53 for the treatment of duchenne in patients with confirmed mutation of the dystrophin gene that is amenable to exon 53 skipping; AMONDYS 45 for the treatment of duchenne in patients with confirmed mutation of the dystrophin gene; and ELEVIDYS, an adeno-associated virus based gene therapy for the treatment of ambulatory pediatric patients aged 4 through 5 years with duchenne with a confirmed mutation in the duchenne gene. The company is also developing SRP-5051, a peptide conjugated PMO that binds exon 51 of dystrophin pre-mRNA; and SRP-9003, a limb-girdle muscular dystrophies gene therapy program. It has collaboration and license agreements with F. Hoffman-La Roche Ltd; Nationwide Children's Hospital; Genevant Sciences; University of Florida; Dyno Therapeutics; Hansa Biopharma; Duke University; Genethon; and StrideBio. The company was incorporated in 1980 and is headquartered in Cambridge, Massachusetts.

About AbCellera Biologics

AbCellera Biologics Inc. builds an engine for antibody drug discovery and development. Its engine discovers antibodies from natural immune responses, which are pre-enriched for antibodies. The company’s preclinical products are ABCL635 for metabolic and endocrine conditions; and ABCL575 for atopic dermatitis. It has a research collaboration and license agreement with Eli Lilly and Company; a research collaboration with Confo Therapeutics for the discovery of therapeutic antibody candidates targeting two undisclosed GPCR targets; and strategic collaboration with Biogen Inc. to discover therapeutic antibodies for neurological conditions, as well as collaboration with Viking Global Investors and ArrowMark Partners. The company was incorporated in 2012 and is headquartered in Vancouver, Canada.