Protara Therapeutics (NASDAQ:TARA – Get Free Report) and Tectonic Therapeutic (NASDAQ:TECX – Get Free Report) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.
Institutional and Insider Ownership
38.1% of Protara Therapeutics shares are owned by institutional investors. Comparatively, 62.6% of Tectonic Therapeutic shares are owned by institutional investors. 12.5% of Protara Therapeutics shares are owned by company insiders. Comparatively, 9.2% of Tectonic Therapeutic shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Protara Therapeutics and Tectonic Therapeutic’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Protara Therapeutics | N/A | -55.96% | -49.06% |
| Tectonic Therapeutic | N/A | -35.53% | -31.97% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Protara Therapeutics | 0 | 0 | 3 | 0 | 3.00 |
| Tectonic Therapeutic | 0 | 0 | 5 | 1 | 3.17 |
Protara Therapeutics presently has a consensus target price of $22.67, indicating a potential upside of 463.85%. Tectonic Therapeutic has a consensus target price of $80.50, indicating a potential upside of 247.28%. Given Protara Therapeutics’ higher possible upside, research analysts clearly believe Protara Therapeutics is more favorable than Tectonic Therapeutic.
Volatility and Risk
Protara Therapeutics has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500. Comparatively, Tectonic Therapeutic has a beta of 2.71, suggesting that its share price is 171% more volatile than the S&P 500.
Earnings & Valuation
This table compares Protara Therapeutics and Tectonic Therapeutic”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Protara Therapeutics | N/A | N/A | -$40.42 million | ($2.82) | -1.43 |
| Tectonic Therapeutic | N/A | N/A | $12.16 million | ($5.89) | -3.94 |
Tectonic Therapeutic is trading at a lower price-to-earnings ratio than Protara Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
Tectonic Therapeutic beats Protara Therapeutics on 8 of the 12 factors compared between the two stocks.
About Protara Therapeutics
Protara Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in advancing transformative therapies for the treatment of cancer and rare diseases. The company's lead program is TARA-002, an investigational cell therapy, which is in Phase II clinical trial for the treatment of non-muscle invasive bladder cancer and lymphatic malformations. It is also developing intravenous choline chloride, an investigational phospholipid substrate replacement therapy that is in Phase II clinical trial for patients receiving parenteral nutrition. The company is headquartered in New York, New York.
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.
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