Spero Therapeutics (NASDAQ:SPRO – Get Free Report) and Synlogic (NASDAQ:SYBX – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.
Earnings and Valuation
This table compares Spero Therapeutics and Synlogic”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Spero Therapeutics | $103.78 million | 0.67 | $22.81 million | $0.33 | 3.89 |
| Synlogic | $3.17 million | 5.24 | -$57.28 million | ($10.03) | -0.14 |
Spero Therapeutics has higher revenue and earnings than Synlogic. Synlogic is trading at a lower price-to-earnings ratio than Spero Therapeutics, 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 | |
| Spero Therapeutics | 0 | 0 | 3 | 0 | 3.00 |
| Synlogic | 0 | 4 | 1 | 0 | 2.20 |
Spero Therapeutics currently has a consensus price target of $7.00, suggesting a potential upside of 444.75%. Synlogic has a consensus price target of $30.00, suggesting a potential upside of 2,012.68%. Given Synlogic’s higher possible upside, analysts plainly believe Synlogic is more favorable than Spero Therapeutics.
Profitability
This table compares Spero Therapeutics and Synlogic’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Spero Therapeutics | 14.74% | 25.67% | 14.26% |
| Synlogic | -2,284.65% | -194.73% | -112.61% |
Volatility & Risk
Spero Therapeutics has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Synlogic has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.
Institutional and Insider Ownership
25.6% of Spero Therapeutics shares are held by institutional investors. Comparatively, 63.4% of Synlogic shares are held by institutional investors. 4.5% of Spero Therapeutics shares are held by company insiders. Comparatively, 8.0% of Synlogic shares are held by company 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.
Summary
Spero Therapeutics beats Synlogic on 9 of the 14 factors compared between the two stocks.
About Spero Therapeutics
Spero Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on identifying, developing, and commercializing novel treatments for multi-drug resistant (MDR) bacterial infections and rare diseases in the United States. The company’s product candidates include tebipenem pivoxil hydrobromide (HBr), an oral carbapenem-class antibiotic to treat complicated urinary tract infections, including pyelonephritis for adults; SPR206, an intravenous-administered antibiotic against MDR Gram-negative pathogens comprising carbapenem-resistant enterobacterales (CRE), acinetobacter baumannii, and pseudomonas aeruginosa, as well as negative bacterial infections in the hospital setting; and SPR720, a novel oral antibiotic agent for the treatment of non-tuberculous mycobacterial pulmonary disease. It has license agreement with Meiji Seika Pharma Co., Ltd. to support the development of tebipenem HBr; Everest Medicines to develop, manufacture, and commercialize SPR206 in Greater China, South Korea, and Southeast Asian countries; and Vertex Pharmaceuticals Incorporated for patents relating to SPR720, as well as SPR719, an active metabolite. Spero Therapeutics, Inc. was founded in 2013 and is headquartered in Cambridge, Massachusetts.
About Synlogic
Synlogic, Inc., a clinical-stage biopharmaceutical company, engages in the discovery and development of synthetic biotics to treat metabolic diseases in the United States. Its pipeline include SYNB1618, an orally administered, non-systemically absorbed drug candidate to treat phenylketonuria; SYNB1934, an orally administered, non-systemically absorbed drug candidate, which is in Phase III clinical trial to treat phenylketonuria; SYNB1353, an orally administered, non-systemically absorbed drug candidate, which is in Phase I clinical to treat homocystinuria; SYNB8802, an orally administered, non-systemically absorbed drug candidate that is in Phase II clinical trial for the treatment of enteric hyperoxaluria; and SYNB2081 to lower uric acid for the potential treatment of gout. The company has a collaboration agreement with F. Hoffmann-La Roche Ltd and Hoffmann-La Roche Inc. for the research and pre-clinical development of a synthetic biotic medicine for the treatment of inflammatory bowel disease; and Ginkgo Bioworks, Inc. Synlogic, Inc. is based in Cambridge, Massachusetts.
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