Analyzing TScan Therapeutics (NASDAQ:TCRX) and Seres Therapeutics (NASDAQ:MCRB)

Seres Therapeutics (NASDAQ:MCRB) and TScan Therapeutics (NASDAQ:TCRX) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Risk & Volatility

Seres Therapeutics has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500. Comparatively, TScan Therapeutics has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Insider & Institutional Ownership

59.3% of Seres Therapeutics shares are owned by institutional investors. Comparatively, 82.8% of TScan Therapeutics shares are owned by institutional investors. 5.2% of Seres Therapeutics shares are owned by insiders. Comparatively, 6.2% of TScan Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Seres Therapeutics and TScan Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seres Therapeutics	N/A	-130.29%	-35.35%
TScan Therapeutics	-1,360.61%	-91.94%	-50.15%

Earnings and Valuation

This table compares Seres Therapeutics and TScan Therapeutics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seres Therapeutics	$790,000.00	65.31	$5.70 million	($5.17)	-1.03
TScan Therapeutics	$10.32 million	5.79	-$129.77 million	($0.96)	-0.95

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

Analyst Recommendations

This is a summary of recent ratings for Seres Therapeutics and TScan Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seres Therapeutics	1	1	2	0	2.25
TScan Therapeutics	1	2	3	0	2.33

Seres Therapeutics presently has a consensus target price of $17.00, suggesting a potential upside of 218.95%. TScan Therapeutics has a consensus target price of $6.00, suggesting a potential upside of 555.88%. Given TScan Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe TScan Therapeutics is more favorable than Seres Therapeutics.

Summary

TScan Therapeutics beats Seres Therapeutics on 10 of the 14 factors compared between the two stocks.

About Seres Therapeutics

Seres Therapeutics, Inc., a microbiome therapeutics company, develop microbiome therapeutics to treat the modulation of the colonic microbiome. It develops a novel class of biological drugs that are designed to treat by modulating the microbiome to restore health by repairing the function of a disrupted microbiome to a non-disease state. The company’s lead product candidate is VOWST, an oral microbiome therapeutic that has completed Phase III clinical trial for the treatment of recurrent Clostridioides difficile infection. Its product pipeline also includes SER-155, an investigational oral fermented microbiome therapeutic which is in Phase 1b clinical trials for the treatment of gastrointestinal infections, bacteremia, and graft versus host disease in immunocompromised patients including patients receiving allogeneic hematopoietic stem cell transplantation. In addition, the company engages in the development of SER-287 which is in Phase 2b and SER-301 that is in Phase 1b to treat ulcerative colitis. Further, it has license Agreement with NHSc Rx License GmbH for the therapeutic products based on the microbiome technology, which includes VOWST product candidate, which is developed for the treatment of CDI and recurrent CDI; and collaboration license agreement with Société des Produits Nestlé S.A. (Nestlé) for the development and commercialization of certain product candidates for the treatment and management of CDI and inflammatory bowel disease including UC and Crohn’s disease. The company was formerly known as Seres Health, Inc. and changed its name to Seres Therapeutics, Inc. in May 2015. Seres Therapeutics, Inc. was incorporated in 2010 and is headquartered in Cambridge, Massachusetts.

About TScan Therapeutics

TScan Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops T cell receptor-engineered T cell (TCR-T) therapies for the treatment of patients with cancer in the United States. The company's lead product candidates include TSC-100 and TSC-101 that is in Phase I clinical trial for the treatment of patients with hematologic malignancies to eliminate residual disease and prevent relapse after allogeneic hematopoietic cell transplantation. It also develops TSC-200, TSC-201, TSC-203, and TSC-204, which are in Phase 1 clinical trial, for the treatment of solid tumors; and TSC-202 to treat solid tumors. In addition, the company develops vaccines for infectious diseases, such as SARS-CoV-2. It has collaborations with Novartis Institutes for BioMedical Research, Inc. To discover and develop novel TCR-T therapies; and Amgen Inc. to identify antigens recognized by T cells in patients with Crohn's disease using TargetScan, a proprietary target discovery platform. TScan Therapeutics, Inc. was incorporated in 2018 and is headquartered in Waltham, Massachusetts.