Reviewing SELLAS Life Sciences Group (NASDAQ:SLS) and LENZ Therapeutics (NASDAQ:LENZ)
by Tristan Rich · The Markets DailySELLAS Life Sciences Group (NASDAQ:SLS – Get Free Report) and LENZ Therapeutics (NASDAQ:LENZ – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.
Volatility and Risk
SELLAS Life Sciences Group has a beta of 2.5, meaning that its stock price is 150% more volatile than the S&P 500. Comparatively, LENZ Therapeutics has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.
Valuation & Earnings
This table compares SELLAS Life Sciences Group and LENZ Therapeutics”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SELLAS Life Sciences Group | N/A | N/A | -$26.86 million | ($0.23) | -35.00 |
| LENZ Therapeutics | $19.09 million | 10.10 | -$82.13 million | ($3.60) | -1.71 |
SELLAS Life Sciences Group has higher earnings, but lower revenue than LENZ Therapeutics. SELLAS Life Sciences Group is trading at a lower price-to-earnings ratio than LENZ Therapeutics, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings for SELLAS Life Sciences Group and LENZ Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SELLAS Life Sciences Group | 1 | 0 | 1 | 0 | 2.00 |
| LENZ Therapeutics | 1 | 2 | 5 | 0 | 2.50 |
SELLAS Life Sciences Group currently has a consensus price target of $10.00, suggesting a potential upside of 24.22%. LENZ Therapeutics has a consensus price target of $29.80, suggesting a potential upside of 384.55%. Given LENZ Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe LENZ Therapeutics is more favorable than SELLAS Life Sciences Group.
Profitability
This table compares SELLAS Life Sciences Group and LENZ Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SELLAS Life Sciences Group | N/A | -47.12% | -42.63% |
| LENZ Therapeutics | -519.30% | -46.82% | -43.32% |
Insider & Institutional Ownership
17.4% of SELLAS Life Sciences Group shares are held by institutional investors. Comparatively, 54.3% of LENZ Therapeutics shares are held by institutional investors. 1.3% of SELLAS Life Sciences Group shares are held by insiders. Comparatively, 8.3% of LENZ Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
LENZ Therapeutics beats SELLAS Life Sciences Group on 8 of the 13 factors compared between the two stocks.
About SELLAS Life Sciences Group
SELLAS Life Sciences Group, Inc., a late-stage clinical biopharmaceutical company, focuses on the development of novel cancer immunotherapies for various cancer indications in the United States. The company’s lead product candidate is galinpepimut-S (GPS), a cancer immunotherapeutic agent that targets Wilms tumor 1, which is in Phase 3 clinical trials for the treatment of acute myeloid leukemia; and in Phase 1/2 clinical trials for the treatment for ovarian cancer. It has a strategic collaboration with Merck & Co., Inc. to evaluate GPS as it is administered in combination with PD1 blocker pembrolizumab in a Phase 1/2 clinical trial enrolling patients in up to five cancer indications, including hematologic malignancies and solid tumors; and GenFleet Therapeutics (Shanghai), Inc. for the development and commercialization of GFH009, a highly selective small molecule CDK9 inhibitor, currently under Phase 1 clinical trials. SELLAS Life Sciences Group, Inc. is headquartered in New York, New York.
About LENZ Therapeutics
LENZ Therapeutics, Inc., a biopharmaceutical company, focuses on developing and commercializing therapies to improve vision in the United States. Its product candidates include LNZ100 and LNZ101 which are in Phase III clinical trials for the treatment of presbyopia. The company is headquartered in Del Mar, California.