SOPHiA GENETICS (NASDAQ:SOPH) vs. SpringWorks Therapeutics (NASDAQ:SWTX) Critical Analysis

SpringWorks Therapeutics (NASDAQ:SWTXGet Free Report) and SOPHiA GENETICS (NASDAQ:SOPHGet Free Report) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Institutional and Insider Ownership

31.6% of SOPHiA GENETICS shares are held by institutional investors. 7.6% of SpringWorks Therapeutics shares are held by insiders. Comparatively, 4.9% of SOPHiA GENETICS shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for SpringWorks Therapeutics and SOPHiA GENETICS, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SpringWorks Therapeutics 0 0 6 0 3.00
SOPHiA GENETICS 0 1 3 0 2.75

SpringWorks Therapeutics presently has a consensus target price of $68.17, indicating a potential upside of 97.24%. SOPHiA GENETICS has a consensus target price of $6.50, indicating a potential upside of 96.97%. Given SpringWorks Therapeutics’ stronger consensus rating and higher possible upside, research analysts clearly believe SpringWorks Therapeutics is more favorable than SOPHiA GENETICS.

Volatility & Risk

SpringWorks Therapeutics has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, SOPHiA GENETICS has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Earnings & Valuation

This table compares SpringWorks Therapeutics and SOPHiA GENETICS”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SpringWorks Therapeutics $86.19 million 29.83 -$325.10 million ($3.88) -8.91
SOPHiA GENETICS $62.37 million 3.46 -$78.98 million ($1.09) -3.03

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

Profitability

This table compares SpringWorks Therapeutics and SOPHiA GENETICS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SpringWorks Therapeutics -203.09% -48.21% -42.19%
SOPHiA GENETICS -110.71% -55.06% -38.33%

About SpringWorks Therapeutics

(Get Free Report)

SpringWorks Therapeutics, Inc., a commercial-stage biopharmaceutical company, engages in the development and commercialization of medicines for underserved patient populations suffering from rare diseases and cancer. Its lead product candidate is OGSIVEO (nirogacestat), an oral small molecule gamma secretase inhibitor that is in Phase III DeFi trial for the treatment of desmoid tumors; and Nirogacestat, is also in Phase 2 clinical development as a monotherapy for the treatment of ovarian granulosa cell tumors (GCT), a subtype of ovarian cancer. The company is also involved in the development of mirdametinib, an oral small molecule MEK inhibitor that is in Phase 2b clinical trials for the treatment of neurofibromatosis type 1-associated plexiform neurofibromas (NF1-PN); mirdametinib + lifirafenib, a combination therapy that is in Phase 1b clinical trial in patients with advanced or refractory solid tumors; and mirdametinib in monotherapy and combination approaches to treat other genetically defined solid tumors, including Phase 1/2 clinical trial for the treatment of pediatric and young adult patients with low-grade gliomas. In addition, it develops Brimarafenib (BGB-3245), an oral selective small molecule inhibitor of monomeric and dimeric forms of activating BRAF mutations. The company has collaborations with BeiGene, Ltd. and GlaxoSmithKline LLC; and license agreements with Pfizer Inc. for nirogacestat and mirdametinib. It also has a license agreement with Katholieke Universiteit Leuven and the Flanders Institute for Biotechnology for a portfolio of novel small molecule inhibitors of the TEA Domain; and Dana-Farber Cancer Institute for a portfolio of novel small molecule inhibitors of Epidermal Growth Factor Receptor. The company was founded in 2017 and is headquartered in Stamford, Connecticut.

About SOPHiA GENETICS

(Get Free Report)

SOPHiA GENETICS SA operates as a cloud-native software technology company in the healthcare space. The company offers SOPHiA DDM platform, a cloud-native software platform for analyzing data and generating insights from multimodal data sets and diagnostic modalities. Its SOPHiA DDM platform and related solutions, applications, products, and services are used by hospitals, laboratories, and biopharmaceutical companies through its own sales force as well as distributors and industry collaborators in Switzerland, France, Italy, rest of Europe, North America, the United States, Latin America, and the Asia-pacific. SOPHiA GENETICS SA was incorporated in 2011 and is headquartered in Rolle, Switzerland.

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