Sangamo Therapeutics (NASDAQ: SGMO) and Fate Therapeutics (NASDAQ:FATE) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.
Volatility and Risk
Sangamo Therapeutics has a beta of 2.6, suggesting that its stock price is 160% more volatile than the S&P 500. Comparatively, Fate Therapeutics has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Sangamo Therapeutics and Fate Therapeutics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sangamo Therapeutics presently has a consensus price target of $22.20, suggesting a potential downside of 7.88%. Fate Therapeutics has a consensus price target of $14.67, suggesting a potential upside of 28.09%. Given Fate Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Fate Therapeutics is more favorable than Sangamo Therapeutics.
Insider and Institutional Ownership
64.7% of Sangamo Therapeutics shares are owned by institutional investors. Comparatively, 66.4% of Fate Therapeutics shares are owned by institutional investors. 5.5% of Sangamo Therapeutics shares are owned by insiders. Comparatively, 10.9% of Fate Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Sangamo Therapeutics and Fate Therapeutics’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sangamo Therapeutics||$36.57 million||56.90||-$54.56 million||($0.70)||-34.43|
|Fate Therapeutics||$4.11 million||147.01||-$42.95 million||($1.02)||-11.23|
Fate Therapeutics has lower revenue, but higher earnings than Sangamo Therapeutics. Sangamo Therapeutics is trading at a lower price-to-earnings ratio than Fate Therapeutics, indicating that it is currently the more affordable of the two stocks.
This table compares Sangamo Therapeutics and Fate Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Fate Therapeutics beats Sangamo Therapeutics on 7 of the 13 factors compared between the two stocks.
About Sangamo Therapeutics
Sangamo Therapeutics, Inc., formerly Sangamo BioSciences, Inc., is a clinical-stage biotechnology company. The Company is focused on translating science into genomic therapies that transform patients’ lives using the Company’s platform technologies in genome editing, gene therapy, gene regulation and cell therapy. The Company has clinical and preclinical programs in development and partnered certain programs with biopharmaceutical companies to expedite clinical and commercial development. The focus for its Company is the development of human therapeutics. The Company’s product pipeline includes SB-525, SB-FIX, SB-318, SB-913, SB-728-T and SB-728-HSPC. The Company has initiated a Phase I/II clinical trial evaluating its zinc finger nuclease (ZFN) in vivo genome editing approach for the treatment of hemophilia B. In the development of its ZFP technology platform, it is focusing its resources on product development for therapeutic use in humans and on its non-therapeutic applications.
About Fate Therapeutics
Fate Therapeutics, Inc. (Fate Therapeutics) is a clinical-stage biopharmaceutical company. The Company is engaged in development of programmed cellular immunotherapies for cancer and immune disorders. The Company’s cell therapy pipeline consists of immuno-oncology programs, including cancer immunotherapies derived from engineered induced pluripotent cells, and immuno-regulatory programs, including hematopoietic cell immunotherapies for protecting the immune system of patients undergoing hematopoietic cell transplantation and for suppressing autoimmunity. Its lead clinical program is ProTmune, which is a programmed immuno-regulatory cell therapy. The Company programs immune cells, such as CD34+ cells, Natural Killer (NK) cells and T cells, by utilizing its cell programming approach. Its adoptive cell therapy programs are based on the Company’s ex vivo cell programming approach, which it applies to modulate the therapeutic function and direct the fate of immune cells.
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