Tectonic Therapeutic (NASDAQ:TECX – Get Free Report) and Vir Biotechnology (NASDAQ:VIR – Get Free Report) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.
Insider and Institutional Ownership
62.6% of Tectonic Therapeutic shares are held by institutional investors. Comparatively, 65.3% of Vir Biotechnology shares are held by institutional investors. 9.2% of Tectonic Therapeutic shares are held by company insiders. Comparatively, 15.6% of Vir Biotechnology shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility & Risk
Tectonic Therapeutic has a beta of 2.62, suggesting that its stock price is 162% more volatile than the S&P 500. Comparatively, Vir Biotechnology has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tectonic Therapeutic | 0 | 0 | 5 | 1 | 3.17 |
| Vir Biotechnology | 0 | 1 | 5 | 0 | 2.83 |
Tectonic Therapeutic currently has a consensus target price of $80.50, indicating a potential upside of 120.85%. Vir Biotechnology has a consensus target price of $34.83, indicating a potential upside of 254.00%. Given Vir Biotechnology’s higher possible upside, analysts plainly believe Vir Biotechnology is more favorable than Tectonic Therapeutic.
Profitability
This table compares Tectonic Therapeutic and Vir Biotechnology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tectonic Therapeutic | N/A | -35.53% | -31.97% |
| Vir Biotechnology | -678.40% | -36.71% | -31.00% |
Earnings and Valuation
This table compares Tectonic Therapeutic and Vir Biotechnology”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tectonic Therapeutic | N/A | N/A | $12.16 million | ($5.89) | -6.19 |
| Vir Biotechnology | $86.18 million | 15.72 | -$615.06 million | ($3.92) | -2.51 |
Tectonic Therapeutic has higher earnings, but lower revenue than Vir Biotechnology. Tectonic Therapeutic is trading at a lower price-to-earnings ratio than Vir Biotechnology, indicating that it is currently the more affordable of the two stocks.
Summary
Vir Biotechnology beats Tectonic Therapeutic on 7 of the 13 factors compared between the two stocks.
About Tectonic Therapeutic
Tectonic Therapeutic, Inc. engages in discovery and development of therapeutic proteins & antibodies. The company was founded by Timothy A. Springer and Andrew Kruse in 2019 and is headquartered in Watertown, MA.
About Vir Biotechnology
Vir Biotechnology, Inc., an immunology company, develops therapeutic products to treat and prevent serious infectious diseases. Its clinical development pipeline consists of product candidates targeting hepatitis delta virus (HDV), hepatitis B virus (HBV), and human immunodeficiency virus (HIV). The company’s preclinical candidates include those targeting influenza A and B, coronavirus disease 2019, respiratory syncytial virus (RSV) and human metapneumovirus (MPV), and human papillomavirus (HPV). The company has grant agreements with Bill & Melinda Gates Foundation and National Institutes of Health; an option and license agreement with Brii Biosciences Limited; a collaboration and license agreement with Alnylam Pharmaceuticals, Inc.; license agreements with MedImmune, LLC; collaboration with WuXi Biologics (Hong Kong) Limited and Glaxo Wellcome UK Ltd.; and a collaborative research agreement with GlaxoSmithKline Biologicals S.A, as well as license agreement with Sanofi for three clinical-stage masked T-cell engagers (TCEs) and exclusive use of the protease-cleavable masking platform for oncology and infectious diseases. It also has a manufacturing agreement with Samsung Biologics Co.,Ltd. The company was incorporated in 2016 and is headquartered in San Francisco, California.
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