Sutro Biopharma (NASDAQ:STRO – Get Free Report) and Palisade Bio (NASDAQ:PALI – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.
Valuation & Earnings
This table compares Sutro Biopharma and Palisade Bio”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sutro Biopharma | $169.36 million | 1.82 | -$106.79 million | ($1.88) | -2.01 |
| Palisade Bio | $250,000.00 | 13.82 | -$12.30 million | ($23.63) | -0.16 |
Palisade Bio has lower revenue, but higher earnings than Sutro Biopharma. Sutro Biopharma is trading at a lower price-to-earnings ratio than Palisade Bio, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sutro Biopharma | 0 | 0 | 8 | 0 | 3.00 |
| Palisade Bio | 0 | 0 | 1 | 0 | 3.00 |
Sutro Biopharma currently has a consensus target price of $12.13, suggesting a potential upside of 221.62%. Palisade Bio has a consensus target price of $22.50, suggesting a potential upside of 509.76%. Given Palisade Bio’s higher possible upside, analysts clearly believe Palisade Bio is more favorable than Sutro Biopharma.
Insider & Institutional Ownership
97.0% of Sutro Biopharma shares are owned by institutional investors. Comparatively, 11.8% of Palisade Bio shares are owned by institutional investors. 5.9% of Sutro Biopharma shares are owned by insiders. Comparatively, 3.3% of Palisade Bio shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Sutro Biopharma and Palisade Bio’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sutro Biopharma | -73.48% | -102.06% | -29.12% |
| Palisade Bio | N/A | -125.02% | -100.21% |
Risk and Volatility
Sutro Biopharma has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Palisade Bio has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.
Summary
Sutro Biopharma beats Palisade Bio on 7 of the 13 factors compared between the two stocks.
About Sutro Biopharma
Sutro Biopharma, Inc. operates as a clinical-stage oncology company. The company develops site-specific and novel-format antibody drug conjugates (ADCs) that enables its proprietary integrated cell-free protein synthesis platform, XpressCF and XpressCF+. Its product candidates include STRO-002, an ADC directed against folate receptor-alpha, which is in Phase II/III clinical trials for patients with ovarian and endometrial cancers; VAX-24 and Vax-31 pneumococcal conjugate vaccine candidates that is in Phase II/III clinical trials for the treatment of invasive pneumococcal disease; and MK-1484, a distinct cytokine derivative molecule that is in Phase I clinical study for the treatment of cancer. The company's pre-clinical product candidates include STRO-003, an ADC directed against an anti-receptor tyrosine kinase-like orphan receptor 1 (ROR1) for the treatment of solid tumors and hematological cancers; and STRO-004, a tissue factor (TF) targeting ADC for the treatment of TF-expressing solid tumors, including cervical, lung, and breast cancer. Sutro Biopharma, Inc. has collaboration and license agreements with Merck Sharp & Dohme Corporation to develop research programs focusing on cytokine derivatives for cancer and autoimmune disorders; Vaxcyte to discover and develop vaccine candidates for the treatment or prophylaxis of infectious diseases; Tasly Biopharmaceuticals Co., Ltd. to develop and commercialize STRO-002 in Greater China; EMD Serono to develop ADCs for multiple cancer targets; and Astellas Pharma Inc. to develop immunostimulatory ADC. The company was formerly known as Fundamental Applied Biology, Inc. Sutro Biopharma, Inc. was incorporated in 2003 and is headquartered in South San Francisco, California.
About Palisade Bio
Palisade Bio, Inc., a clinical-stage biopharmaceutical company, focuses on focuses on developing therapeutics that protect the integrity of the intestinal barrier in the United States. The company's lead therapeutic candidate is PALI-2108, a prodrug PDE4 inhibitor, currently under pre-clinical development as a therapeutic for patients living with inflammatory bowel diseases, including ulcerative colitis and Crohn's disease (CD), as well as develops PALI-1908, an oral, selective PDE4 inhibitor prodrug that is locally bioactivated in the terminal ileum of CD patients, currently in the research stage. It has a research collaboration and license agreement with Giiant Pharma, Inc. for the development, manufacture, and commercialization of its compounds; a license agreement with the Regents of the University of California; a co-development and distribution agreement with Newsoara Biopharma Co., Ltd; and a transformative strategic collaboration with Strand Life Sciences for advancing precision medicine for ulcerative colitis therapy. The company is based in Carlsbad, California.
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