Financial Review: ARS Pharmaceuticals (NASDAQ:SPRY) and Q32 Bio (NASDAQ:QTTB)

Q32 Bio (NASDAQ:QTTB) and ARS Pharmaceuticals (NASDAQ:SPRY) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Valuation & Earnings

This table compares Q32 Bio and ARS Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Q32 Bio	-$6.65 million	-6.06	-$112.96 million	($14.25)	-0.23
ARS Pharmaceuticals	$2.57 million	431.81	-$54.37 million	($0.51)	-22.37

ARS Pharmaceuticals has higher revenue and earnings than Q32 Bio. ARS Pharmaceuticals is trading at a lower price-to-earnings ratio than Q32 Bio, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Q32 Bio and ARS Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Q32 Bio	N/A	-146.18%	-54.49%
ARS Pharmaceuticals	N/A	-22.56%	-21.82%

Analyst Recommendations

This is a summary of current recommendations and price targets for Q32 Bio and ARS Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Q32 Bio	0	4	4	0	2.50
ARS Pharmaceuticals	0	0	4	2	3.33

Q32 Bio presently has a consensus target price of $29.86, suggesting a potential upside of 802.03%. ARS Pharmaceuticals has a consensus target price of $24.00, suggesting a potential upside of 110.34%. Given Q32 Bio’s higher possible upside, analysts clearly believe Q32 Bio is more favorable than ARS Pharmaceuticals.

Volatility & Risk

Q32 Bio has a beta of -0.46, suggesting that its stock price is 146% less volatile than the S&P 500. Comparatively, ARS Pharmaceuticals has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Insider and Institutional Ownership

31.3% of Q32 Bio shares are held by institutional investors. Comparatively, 68.2% of ARS Pharmaceuticals shares are held by institutional investors. 16.1% of Q32 Bio shares are held by insiders. Comparatively, 40.1% of ARS Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

ARS Pharmaceuticals beats Q32 Bio on 11 of the 13 factors compared between the two stocks.

About Q32 Bio

Q32 Bio Inc., a clinical-stage biotechnology company, develops biologic therapeutics to restore healthy immune balance in patients with autoimmune and inflammatory diseases driven by pathological immune dysfunction in the United States. Its lead product candidate is ADX-097, a humanized anti-C3d monoclonal antibody fusion protein to restore complement regulation, which has completed Phase I clinical trial for the treatment of renal and other complement-mediated diseases of high unmet need, including lupus nephritis, immunoglobulin A nephropathy, complement component 3 glomerulopathy, and anti-neutrophil cytoplasmic antibody-associated vasculitis. The company is also developing Bempikibart (ADX-914), a fully human antiinterleukin-7 receptor alpha antagonist monoclonal antibody designed to re-regulate adaptive immune function by blocking signaling mediated by interleukin-7 and thymic stromal lymphopoietin that is Phase II clinical trial for the treatment of atopic dermatitis and alopecia areata. Q32 Bio Inc. was formerly known as AdMIRx Inc. and changed its name to Q32 Bio Inc. in April 2020. The company was founded in 2017 and is based in Waltham, Massachusetts.

About ARS Pharmaceuticals

ARS Pharmaceuticals, Inc., a biopharmaceutical company, develops treatments for severe allergic reactions. The company is developing neffy, a needle-free and low-dose intranasal epinephrine nasal spray for the emergency treatment of Type I allergic reactions, including anaphylaxis. It serves healthcare professionals, patients, and caregivers. ARS Pharmaceuticals, Inc. was founded in 2015 and is headquartered in San Diego, California.