Sarepta Therapeutics (NASDAQ:SRPT) versus Valneva (NASDAQ:VALN) Financial Analysis

Valneva (NASDAQ:VALN) and Sarepta Therapeutics (NASDAQ:SRPT) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Valneva and Sarepta Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valneva	2	0	1	0	1.67
Sarepta Therapeutics	7	6	7	0	2.00

Valneva currently has a consensus target price of $9.30, indicating a potential upside of 70.64%. Sarepta Therapeutics has a consensus target price of $22.88, indicating a potential upside of 22.85%. Given Valneva’s higher possible upside, equities analysts plainly believe Valneva is more favorable than Sarepta Therapeutics.

Institutional and Insider Ownership

11.4% of Valneva shares are owned by institutional investors. Comparatively, 86.7% of Sarepta Therapeutics shares are owned by institutional investors. 14.9% of Valneva shares are owned by insiders. Comparatively, 6.9% of Sarepta Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Valneva has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Sarepta Therapeutics has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500.

Valuation and Earnings

This table compares Valneva and Sarepta Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Valneva	$197.56 million	2.62	-$130.33 million	($2.11)	-2.58
Sarepta Therapeutics	$2.20 billion	0.89	-$713.41 million	($2.90)	-6.42

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Valneva	-110.33%	-153.20%	-39.50%
Sarepta Therapeutics	-13.48%	-1.60%	-0.66%

About Valneva

Valneva SE, a specialty vaccine company, develops, manufactures, and commercializes prophylactic vaccines for infectious diseases with unmet needs. It offers IXIARO, an inactivated Vero cell culture-derived Japanese encephalitis vaccine indicated for active immunization against Japanese encephalitis; DUKORAL, an oral vaccine for the prevention of diarrhea caused by Vibrio cholera and/or heat-labile toxin producing enterotoxigenic Escherichia coli bacterium; IXCHIQ, a single-dose, live-attenuated vaccine for the prevention of disease caused by chikungunya virus; and VLA2001, an inactivated whole-virus COVID-19 vaccine. The company also develops VLA15, a vaccine candidate, which is in Phase III clinical trial against Borrelia, the bacterium that causes Lyme disease; VLA1553, a vaccine candidate, which is in Phase III clinical trial against the chikungunya virus; VLA1554, a vaccine candidate targeting human metapneumovirus; and VLA2112, a vaccine candidate to treat patients with epstein-barr virus. It sells its products in the United States, Canada, Germany, Austria, Nordics, the United Kingdom, France, rest of European countries, and internationally. Valneva SE has collaborations with Pfizer, Inc. to co-develop and commercialize its Lyme disease vaccine; and Instituto Butantan for the development, manufacturing, and marketing of single-shot chikungunya vaccine. The company was founded in 1998 and is based in Saint-Herblain, France.

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.