Tocagen (TOCA) vs. Aduro BioTech (ADRO) Financial Analysis

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

Profitability

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

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

Insider and Institutional Ownership

37.2% of Tocagen shares are owned by institutional investors. Comparatively, 45.1% of Aduro BioTech shares are owned by institutional investors. 6.6% of Aduro BioTech shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Tocagen and Aduro BioTech’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tocagen $40,000.00 5,630.99 -$33.47 million N/A N/A
Aduro BioTech $50.68 million 9.30 -$91.14 million ($1.36) -4.49

Tocagen has higher earnings, but lower revenue than Aduro BioTech.

Analyst Ratings

This is a breakdown of current ratings and price targets for Tocagen and Aduro BioTech, as reported by MarketBeat.com.

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

Tocagen presently has a consensus price target of $23.67, suggesting a potential upside of 108.15%. Aduro BioTech has a consensus price target of $18.50, suggesting a potential upside of 203.28%. Given Aduro BioTech’s higher possible upside, analysts clearly believe Aduro BioTech is more favorable than Tocagen.

Summary

Aduro BioTech beats Tocagen on 7 of the 10 factors compared between the two stocks.

Tocagen Company Profile

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.

Aduro BioTech Company Profile

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.

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