Head-To-Head Contrast: Summit Therapeutics (NASDAQ:SMMT) versus Stoke Therapeutics (NASDAQ:STOK)

Summit Therapeutics (NASDAQ:SMMT) and Stoke Therapeutics (NASDAQ:STOK) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Risk & Volatility

Summit Therapeutics has a beta of -0.97, meaning that its stock price is 197% less volatile than the S&P 500. Comparatively, Stoke Therapeutics has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Summit Therapeutics	N/A	-125.07%	-51.02%
Stoke Therapeutics	N/A	-65.47%	-46.66%

Insider & Institutional Ownership

4.6% of Summit Therapeutics shares are owned by institutional investors. 88.3% of Summit Therapeutics shares are owned by company insiders. Comparatively, 11.3% of Stoke Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Summit Therapeutics and Stoke Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit Therapeutics	0	0	2	0	3.00
Stoke Therapeutics	0	1	7	0	2.88

Summit Therapeutics currently has a consensus price target of $13.50, suggesting a potential upside of 29.62%. Stoke Therapeutics has a consensus price target of $20.57, suggesting a potential upside of 42.26%. Given Stoke Therapeutics’ higher probable upside, analysts plainly believe Stoke Therapeutics is more favorable than Summit Therapeutics.

Valuation & Earnings

This table compares Summit Therapeutics and Stoke Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summit Therapeutics	$700,000.00	10,444.46	-$614.93 million	($0.16)	-65.09
Stoke Therapeutics	$7.84 million	96.08	-$104.70 million	($2.41)	-6.00

Stoke Therapeutics has higher revenue and earnings than Summit Therapeutics. Summit 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.

Summary

Stoke Therapeutics beats Summit Therapeutics on 8 of the 13 factors compared between the two stocks.

About Summit Therapeutics

Summit Therapeutics Inc., a biopharmaceutical company, focuses on discovery, development, and commercialization of patient, physician, caregiver, and societal friendly medicinal therapies in the United States, and the United Kingdom. The company's lead development candidate is Ivonescimab, a bispecific antibody for immunotherapy through blockade of PD-1 with the anti-angiogenesis; and anti-infectives portfolio includes SMT-738, a novel class of precision antibiotics for the treatment of multidrug resistant infections, which primarily includes carbapenem-resistant Enterobacteriaceae infections. It has a collaboration and license agreement with Akeso, Inc. and its affiliates to develop and commercialize ivonescimab. The company was founded in 2003 and is headquartered in Miami, Florida.

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.