Arbutus Biopharma (NASDAQ:ABUS) versus Monte Rosa Therapeutics (NASDAQ:GLUE) Head-To-Head Comparison

Arbutus Biopharma (NASDAQ:ABUS) and Monte Rosa Therapeutics (NASDAQ:GLUE) are both small-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Earnings & Valuation

This table compares Arbutus Biopharma and Monte Rosa Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arbutus Biopharma	$14.08 million	72.04	-$33.50 million	$0.79	6.48
Monte Rosa Therapeutics	$123.67 million	9.71	-$38.63 million	($1.76)	-7.99

Arbutus Biopharma has higher earnings, but lower revenue than Monte Rosa Therapeutics. Monte Rosa Therapeutics is trading at a lower price-to-earnings ratio than Arbutus Biopharma, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Arbutus Biopharma and Monte Rosa Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arbutus Biopharma	84.22%	90.98%	82.34%
Monte Rosa Therapeutics	-560.85%	-43.31%	-27.59%

Risk & Volatility

Arbutus Biopharma has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Monte Rosa Therapeutics has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Arbutus Biopharma and Monte Rosa Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arbutus Biopharma	0	1	1	0	2.50
Monte Rosa Therapeutics	1	1	6	1	2.78

Arbutus Biopharma presently has a consensus target price of $5.00, indicating a potential downside of 2.34%. Monte Rosa Therapeutics has a consensus target price of $28.50, indicating a potential upside of 102.56%. Given Monte Rosa Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Monte Rosa Therapeutics is more favorable than Arbutus Biopharma.

Institutional & Insider Ownership

43.8% of Arbutus Biopharma shares are owned by institutional investors. Comparatively, 80.0% of Monte Rosa Therapeutics shares are owned by institutional investors. 19.9% of Arbutus Biopharma shares are owned by insiders. Comparatively, 6.4% of Monte Rosa Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Arbutus Biopharma beats Monte Rosa Therapeutics on 8 of the 15 factors compared between the two stocks.

About Arbutus Biopharma

Arbutus Biopharma Corporation, a biopharmaceutical company, develops novel therapeutics for chronic Hepatitis B virus (HBV) infection in the United States. Its HBV product pipeline consists of imdusiran (AB-729), a proprietary subcutaneously-delivered RNAi therapeutic product candidate that suppresses all HBV antigens, including HBsAg expression. The company’s research and development programs include AB-101, an oral PD-L1 inhibitor to reawaken patients’ HBV-specific immune system; and small molecule antiviral medicines to treat coronaviruses, including COVID-19. It has licensing agreements with Gritstone Oncology, Inc; Alnylam Pharmaceuticals, Inc.; Qilu Pharmaceuticals Co, Ltd; Assembly Biosciences, Inc.; Acuitas Therapeutics, Inc.; and Antios Therapeutics, Inc. Arbutus Biopharma Corporation also has a clinical collaboration agreement with Barinthus Biotherapeutics plc to evaluate VTP-300. The company was formerly known as Tekmira Pharmaceuticals Corporation and changed its name to Arbutus Biopharma Corporation in July 2015. Arbutus Biopharma Corporation is headquartered in Warminster, Pennsylvania.

About Monte Rosa Therapeutics

Monte Rosa Therapeutics, Inc., a clinical-stage biotechnology company, engages in the development of novel small molecule precision medicines that employ the body's natural mechanisms to selectively degrade therapeutically relevant proteins. The company develops MRT-2359, an orally bioavailable molecular glue degrader targeting the translation termination factor protein GSPT1 for the treatment of MYC-driven tumors; MRT-6160 for the treatment of systemic and central nervous system autoimmune diseases; and MRT-8102 for the treatment of IL-1?/NLRP3 driven inflammatory diseases. It also develops CDK2 to treat ovarian, uterine, and breast cancers. The company was incorporated in 2019 and is headquartered in Boston, Massachusetts.