Monte Rosa Therapeutics (NASDAQ:GLUE – Get Free Report) and NextCure (NASDAQ:NXTC – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.
Volatility & Risk
Monte Rosa Therapeutics has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500. Comparatively, NextCure has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500.
Profitability
This table compares Monte Rosa Therapeutics and NextCure’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Monte Rosa Therapeutics | 11.54% | 8.28% | 5.07% |
| NextCure | N/A | -131.38% | -98.62% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Monte Rosa Therapeutics | 1 | 1 | 3 | 0 | 2.40 |
| NextCure | 1 | 0 | 3 | 0 | 2.50 |
Monte Rosa Therapeutics presently has a consensus target price of $17.75, suggesting a potential upside of 14.22%. NextCure has a consensus target price of $23.00, suggesting a potential upside of 102.11%. Given NextCure’s stronger consensus rating and higher possible upside, analysts plainly believe NextCure is more favorable than Monte Rosa Therapeutics.
Valuation and Earnings
This table compares Monte Rosa Therapeutics and NextCure”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Monte Rosa Therapeutics | $75.62 million | 13.38 | -$72.70 million | $0.32 | 48.56 |
| NextCure | N/A | N/A | -$55.65 million | ($24.11) | -0.47 |
NextCure has lower revenue, but higher earnings than Monte Rosa Therapeutics. NextCure is trading at a lower price-to-earnings ratio than Monte Rosa Therapeutics, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
80.0% of Monte Rosa Therapeutics shares are owned by institutional investors. Comparatively, 42.7% of NextCure shares are owned by institutional investors. 6.9% of Monte Rosa Therapeutics shares are owned by company insiders. Comparatively, 17.9% of NextCure shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Monte Rosa Therapeutics beats NextCure on 8 of the 12 factors compared between the two stocks.
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.
About NextCure
NextCure, Inc., a clinical-stage biopharmaceutical company, engages in discovering and developing novel immunomedicines to treat cancer and other immune-related diseases by restoring normal immune function. The company is developing NC410, an immunomedicine designed to block immune suppression mediated by LAIR-1; NC762, a monoclonal antibody that binds specifically to B7-H4, a protein expressed on multiple tumor types; and NC525, a monoclonal antibody that binds to LAIR-1 to functionally kill AML blast cells and leukemic stem cells while preserving normal blood cells, including hematopoietic stem cells. Its discovery and research programs include an antibody in preclinical evaluation of other potential novel immunomodulatory molecules. It has a license agreement with Yale University. The company was incorporated in 2015 and is headquartered in Beltsville, Maryland.
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