Arbutus Biopharma (NASDAQ:ABUS – Get Free Report) and TransCode Therapeutics (NASDAQ:RNAZ – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Risk and Volatility
Arbutus Biopharma has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500. Comparatively, TransCode Therapeutics has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.
Institutional & Insider Ownership
43.8% of Arbutus Biopharma shares are held by institutional investors. 4.0% of Arbutus Biopharma shares are held by insiders. Comparatively, 2.8% of TransCode Therapeutics shares are held by 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.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arbutus Biopharma | $18.14 million | 35.10 | -$72.85 million | ($0.43) | -7.81 |
| TransCode Therapeutics | N/A | N/A | -$18.55 million | N/A | N/A |
TransCode Therapeutics has lower revenue, but higher earnings than Arbutus Biopharma.
Profitability
This table compares Arbutus Biopharma and TransCode Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Arbutus Biopharma | -1,137.65% | -68.18% | -51.55% |
| TransCode Therapeutics | N/A | -649.03% | -281.34% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Arbutus Biopharma and TransCode Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arbutus Biopharma | 0 | 0 | 4 | 0 | 3.00 |
| TransCode Therapeutics | 0 | 0 | 1 | 0 | 3.00 |
Arbutus Biopharma currently has a consensus price target of $5.50, suggesting a potential upside of 63.69%. TransCode Therapeutics has a consensus price target of $20.00, suggesting a potential upside of 86.92%. Given TransCode Therapeutics’ higher probable upside, analysts clearly believe TransCode Therapeutics is more favorable than Arbutus Biopharma.
Summary
Arbutus Biopharma beats TransCode Therapeutics on 7 of the 10 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 TransCode Therapeutics
TransCode Therapeutics, Inc., a ribonucleic acid (RNA) oncology company, focuses on the development and commercialization of drugs and diagnostics for treating and identifying various cancers. Its lead therapeutic candidate is TTX-MC138 that targets microRNA-10b, a master regulator of metastatic cell viability in a range of cancers, including breast, pancreatic, ovarian, colon cancer, glioblastomas, and others. The company is also developing TTX-siPDL1, an siRNA-based modulator of programmed death-ligand 1; and TTX-siLIN28B, an siRNA-based inhibitor of RNA-binding protein LIN28B. In addition, the company developing TTX-RIGA, an RNA- based agonist of the retinoic acid-inducible gene I targeting activation of innate immunity in the tumor microenvironment; TTX-CRISPR, a CRISPR/Cas9-based therapy platform for the repair or elimination of cancer-causing genes inside tumor cells; and TTX-mRNA, an mRNA-based platform for the development of cancer vaccines that activate cytotoxic immune responses against tumor cells. TransCode Therapeutics, Inc. was incorporated in 2016 and is based in Boston, Massachusetts.
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