Tectonic Therapeutic (NASDAQ:TECX) versus X4 Pharmaceuticals (NASDAQ:XFOR) Critical Review

X4 Pharmaceuticals (NASDAQ:XFOR) and Tectonic Therapeutic (NASDAQ:TECX) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations for X4 Pharmaceuticals and Tectonic Therapeutic, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
X4 Pharmaceuticals	0	1	2	0	2.67
Tectonic Therapeutic	0	0	4	1	3.20

X4 Pharmaceuticals currently has a consensus target price of $3.67, indicating a potential upside of 606.49%. Tectonic Therapeutic has a consensus target price of $60.00, indicating a potential upside of 46.13%. Given X4 Pharmaceuticals’ higher probable upside, analysts plainly believe X4 Pharmaceuticals is more favorable than Tectonic Therapeutic.

Profitability

This table compares X4 Pharmaceuticals and Tectonic Therapeutic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
X4 Pharmaceuticals	N/A	-163.17%	-54.32%
Tectonic Therapeutic	N/A	-41.05%	-37.33%

Institutional & Insider Ownership

72.0% of X4 Pharmaceuticals shares are held by institutional investors. Comparatively, 62.6% of Tectonic Therapeutic shares are held by institutional investors. 1.1% of X4 Pharmaceuticals shares are held by insiders. Comparatively, 9.2% of Tectonic Therapeutic shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares X4 Pharmaceuticals and Tectonic Therapeutic”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
X4 Pharmaceuticals	$563,000.00	154.81	-$101.17 million	($0.70)	-0.74
Tectonic Therapeutic	N/A	N/A	$12.16 million	($5.17)	-7.94

Tectonic Therapeutic has lower revenue, but higher earnings than X4 Pharmaceuticals. Tectonic Therapeutic is trading at a lower price-to-earnings ratio than X4 Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

X4 Pharmaceuticals has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, Tectonic Therapeutic has a beta of 2.63, meaning that its stock price is 163% more volatile than the S&P 500.

Summary

Tectonic Therapeutic beats X4 Pharmaceuticals on 8 of the 13 factors compared between the two stocks.

About X4 Pharmaceuticals

X4 Pharmaceuticals, Inc., a late-stage clinical biopharmaceutical company, focuses on the research, development, and commercialization of novel therapeutics for the treatment of rare diseases. Its lead product candidate is mavorixafor, a small molecule inhibitor of the chemokine receptor C-X-C chemokine receptor type 4 (CXCR4), which is in Phase III clinical trial for the treatment of patients with warts, hypogammaglobulinemia, infections, and myelokathexis syndrome; and Phase II clinical trial to treat congenital, idiopathic, or cyclic neutropenia. The company is also developing X4P-003, a CXCR4 antagonist for the treatment of CXCR4 dependent disorders and primary immunodeficiencies; and X4P-002, a CXCR4 antagonist for the treatment of blood-brain barrier diseases. It has a license agreement with Abbisko Therapeutics Co Ltd. to develop, manufacture, and commercialize mavorixafor in combination with checkpoint inhibitors or other agents in oncology indications. The company is headquartered in Boston, Massachusetts.

About Tectonic Therapeutic

Avrobio, Inc. is a bio-technology company. It develops step-change cell and gene therapies for the treatment of cancer and rare disease. The company operates primarily in the United States and Canada. Avrobio, Inc. is based in MA, United States.