Head-To-Head Analysis: Aduro BioTech (ADRO) vs. Tocagen (TOCA)

Aduro BioTech (NASDAQ: ADRO) and Tocagen (NASDAQ:TOCA) are both small-cap healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Earnings & Valuation

This table compares Aduro BioTech and Tocagen’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aduro BioTech $50.68 million 9.53 -$91.14 million ($1.36) -4.60
Tocagen $40,000.00 6,061.86 -$33.47 million ($2.00) -6.12

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

Institutional and Insider Ownership

45.1% of Aduro BioTech shares are owned by institutional investors. Comparatively, 37.5% of Tocagen shares are owned by institutional investors. 6.6% of Aduro BioTech shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Aduro BioTech and Tocagen, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aduro BioTech 0 0 8 0 3.00
Tocagen 0 0 2 0 3.00

Aduro BioTech presently has a consensus target price of $18.50, suggesting a potential upside of 196.00%. Tocagen has a consensus target price of $23.67, suggesting a potential upside of 93.36%. Given Aduro BioTech’s higher probable upside, analysts clearly believe Aduro BioTech is more favorable than Tocagen.

Profitability

This table compares Aduro BioTech and Tocagen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aduro BioTech -548.92% -39.28% -21.15%
Tocagen -89,078.05% N/A -51.70%

Summary

Aduro BioTech beats Tocagen on 9 of the 12 factors compared between the two stocks.

About Aduro BioTech

Aduro Biotech, Inc. is an immunotherapy company, which focuses on the discovery, development and commercialization of therapies that manage the treatment of various diseases, including cancer. The Company’s product candidates from its Live, Attenuated, Double-Deleted (LADD) Listeria monocytogenes, Stimulator of Interferon Genes Pathway Activator, and B-select monoclonal antibody platforms are designed to stimulate and/or regulate innate and adaptive immune responses, either as single agents or in combination with conventional therapies, as well as other immunotherapies. Its LADD technology platform is being developed as a treatment for multiple indications, including mesothelioma, ovarian, gastric, lung and prostate cancers. Its LADD product candidate is CRS-207, which is being developed as a treatment for multiple indications, including mesothelioma, ovarian and gastric cancers. ADU-214 and ADU-741 are product candidates in development for lung and prostate cancers, respectively.

About Tocagen

Tocagen Inc. (Tocagen) is a clinical-stage, cancer-selective gene therapy company. The Company is focused on developing product candidates designed to activate a patient’s immune system against their own cancer. Its cancer-selective gene therapy platform is built on retroviral replicating vectors (RRVs), which are designed to selectively deliver therapeutic genes into the deoxyribonucleic acid (DNA) of cancer cells. Its lead product candidates are vocimagene amiretrorepvec (Toca 511) and flucytosine extended release (Toca FC). Toca 511 is an investigational injectable retroviral replicating vector (RRV) that encodes a prodrug activator enzyme, cytosine deaminase (CD). Toca FC is an investigational extended-release version of 5-fluorocytosine (5-FC), a prodrug that is inactive as an anti-cancer drug. As of February, 2017, Tocagen has completed enrollment of the Phase II portion with 187 patients.

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