Contrasting SpringWorks Therapeutics (NASDAQ:SWTX) and Tectonic Therapeutic (NASDAQ:TECX)

Tectonic Therapeutic (NASDAQ:TECXGet Free Report) and SpringWorks Therapeutics (NASDAQ:SWTXGet Free Report) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Insider and Institutional Ownership

62.6% of Tectonic Therapeutic shares are owned by institutional investors. 9.2% of Tectonic Therapeutic shares are owned by company insiders. Comparatively, 7.6% of SpringWorks Therapeutics shares are owned 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.

Valuation and Earnings

This table compares Tectonic Therapeutic and SpringWorks Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tectonic Therapeutic N/A N/A $12.16 million $0.69 24.93
SpringWorks Therapeutics $86.19 million 34.93 -$325.10 million ($5.14) -7.90

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

Risk & Volatility

Tectonic Therapeutic has a beta of 2.63, suggesting that its stock price is 163% more volatile than the S&P 500. Comparatively, SpringWorks Therapeutics has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Tectonic Therapeutic and SpringWorks Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tectonic Therapeutic 0 0 4 1 3.20
SpringWorks Therapeutics 0 0 6 0 3.00

Tectonic Therapeutic presently has a consensus target price of $60.00, indicating a potential upside of 248.84%. SpringWorks Therapeutics has a consensus target price of $68.83, indicating a potential upside of 69.42%. Given Tectonic Therapeutic’s stronger consensus rating and higher possible upside, analysts plainly believe Tectonic Therapeutic is more favorable than SpringWorks Therapeutics.

Profitability

This table compares Tectonic Therapeutic and SpringWorks Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tectonic Therapeutic N/A -50.52% -47.13%
SpringWorks Therapeutics N/A -56.13% -48.80%

Summary

Tectonic Therapeutic beats SpringWorks Therapeutics on 11 of the 13 factors compared between the two stocks.

About Tectonic Therapeutic

(Get Free Report)

Avrobio, Inc. is a bio-technology company. It develops step-change cell and gene therapies for the treatment of cancer and rare disease. The company operates primarily in the United States and Canada. Avrobio, Inc. is based in MA, United States.

About SpringWorks Therapeutics

(Get Free Report)

SpringWorks Therapeutics, Inc., a commercial-stage biopharmaceutical company, engages in the development and commercialization of medicines for underserved patient populations suffering from rare diseases and cancer. Its lead product candidate is OGSIVEO (nirogacestat), an oral small molecule gamma secretase inhibitor that is in Phase III DeFi trial for the treatment of desmoid tumors; and Nirogacestat, is also in Phase 2 clinical development as a monotherapy for the treatment of ovarian granulosa cell tumors (GCT), a subtype of ovarian cancer. The company is also involved in the development of mirdametinib, an oral small molecule MEK inhibitor that is in Phase 2b clinical trials for the treatment of neurofibromatosis type 1-associated plexiform neurofibromas (NF1-PN); mirdametinib + lifirafenib, a combination therapy that is in Phase 1b clinical trial in patients with advanced or refractory solid tumors; and mirdametinib in monotherapy and combination approaches to treat other genetically defined solid tumors, including Phase 1/2 clinical trial for the treatment of pediatric and young adult patients with low-grade gliomas. In addition, it develops Brimarafenib (BGB-3245), an oral selective small molecule inhibitor of monomeric and dimeric forms of activating BRAF mutations. The company has collaborations with BeiGene, Ltd. and GlaxoSmithKline LLC; and license agreements with Pfizer Inc. for nirogacestat and mirdametinib. It also has a license agreement with Katholieke Universiteit Leuven and the Flanders Institute for Biotechnology for a portfolio of novel small molecule inhibitors of the TEA Domain; and Dana-Farber Cancer Institute for a portfolio of novel small molecule inhibitors of Epidermal Growth Factor Receptor. The company was founded in 2017 and is headquartered in Stamford, Connecticut.

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