Rapt Therapeutics (NASDAQ:RAPT) & Atea Pharmaceuticals (NASDAQ:AVIR) Head-To-Head Contrast

Atea Pharmaceuticals (NASDAQ:AVIR) and Rapt Therapeutics (NASDAQ:RAPT) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.

Analyst Recommendations

This is a summary of current ratings for Atea Pharmaceuticals and Rapt Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atea Pharmaceuticals	1	1	1	1	2.50
Rapt Therapeutics	1	2	8	2	2.85

Atea Pharmaceuticals currently has a consensus target price of $6.00, suggesting a potential upside of 64.38%. Rapt Therapeutics has a consensus target price of $50.50, suggesting a potential upside of 42.57%. Given Atea Pharmaceuticals’ higher probable upside, equities analysts plainly believe Atea Pharmaceuticals is more favorable than Rapt Therapeutics.

Valuation and Earnings

This table compares Atea Pharmaceuticals and Rapt Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atea Pharmaceuticals	N/A	N/A	-$168.38 million	($1.77)	-2.06
Rapt Therapeutics	$1.53 million	641.50	-$129.87 million	($11.06)	-3.20

Rapt Therapeutics has higher revenue and earnings than Atea Pharmaceuticals. Rapt Therapeutics is trading at a lower price-to-earnings ratio than Atea Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

86.7% of Atea Pharmaceuticals shares are owned by institutional investors. Comparatively, 99.1% of Rapt Therapeutics shares are owned by institutional investors. 18.1% of Atea Pharmaceuticals shares are owned by company insiders. Comparatively, 2.4% of Rapt Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Atea Pharmaceuticals has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500. Comparatively, Rapt Therapeutics has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Profitability

This table compares Atea Pharmaceuticals and Rapt Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atea Pharmaceuticals	N/A	-38.43%	-35.88%
Rapt Therapeutics	N/A	-61.81%	-54.73%

Summary

Rapt Therapeutics beats Atea Pharmaceuticals on 7 of the 13 factors compared between the two stocks.

About Atea Pharmaceuticals

Atea Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, discovers, develops, and commercializes antiviral therapeutics for patients with viral infections. Its lead product candidate is AT-527, an oral antiviral candidate that is in Phase 3 SUNRISE-3 clinical trial for the treatment of patients with COVID-19. The company also develops bemnifosbuvir in combination with ruzasvir, which is in Phase 2 clinical trial, for the treatment of hepatitis C virus (HCV); and a protease inhibitor for the treatment of COVID-19. It has a license agreement with MSD International GmbH for the development, manufacture, and commercialization of Ruzasvir, an NS5A inhibitor, for the treatment of HCV. Atea Pharmaceuticals, Inc. was incorporated in 2012 and is headquartered in Boston, Massachusetts.

About Rapt Therapeutics

RAPT Therapeutics, Inc., a clinical-stage immunology-based biopharmaceutical company, focuses on discovery, development, and commercialization of oral small molecule therapies for patients with unmet needs in oncology and inflammatory diseases in the United States. The company's lead inflammation drug candidate is zelnecirnon (RPT193), a C-C motif chemokine receptor 4 (CCR4) antagonist that selectively inhibit the migration of type 2 T helper cells into inflamed tissues. Its lead oncology drug candidate is tivumecirnon (FLX475), an oral small molecule CCR4 antagonist that is in the Phase 1/2 clinical trial to investigate as a monotherapy and in combination with pembrolizumab in patients with advanced cancer. The company was formerly known as FLX Bio, Inc. and changed its name to RAPT Therapeutics, Inc. in May 2019. RAPT Therapeutics, Inc. was incorporated in 2015 and is headquartered in South San Francisco, California. RAPT Therapeutics, Inc. operates as a subsidiary of Bristol-Myers Squibb Company