Vir Biotechnology (NASDAQ:VIR – Get Free Report) and Tectonic Therapeutic (NASDAQ:TECX – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.
Insider and Institutional Ownership
65.3% of Vir Biotechnology shares are held by institutional investors. Comparatively, 62.6% of Tectonic Therapeutic shares are held by institutional investors. 15.6% of Vir Biotechnology shares are held by company insiders. Comparatively, 9.2% of Tectonic Therapeutic shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and target prices for Vir Biotechnology and Tectonic Therapeutic, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vir Biotechnology | 0 | 1 | 5 | 0 | 2.83 |
| Tectonic Therapeutic | 0 | 0 | 5 | 1 | 3.17 |
Risk and Volatility
Vir Biotechnology has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Tectonic Therapeutic has a beta of 2.62, meaning that its stock price is 162% more volatile than the S&P 500.
Earnings and Valuation
This table compares Vir Biotechnology and Tectonic Therapeutic”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vir Biotechnology | $86.18 million | 14.49 | -$615.06 million | ($3.92) | -2.31 |
| Tectonic Therapeutic | N/A | N/A | $12.16 million | ($5.89) | -5.41 |
Tectonic Therapeutic has lower revenue, but higher earnings 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.
Profitability
This table compares Vir Biotechnology and Tectonic Therapeutic’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vir Biotechnology | -678.40% | -36.71% | -31.00% |
| Tectonic Therapeutic | N/A | -35.53% | -31.97% |
Summary
Vir Biotechnology beats Tectonic Therapeutic on 7 of the 13 factors compared between the two stocks.
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.
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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