Financial Analysis: Werewolf Therapeutics (NASDAQ:HOWL) & Vir Biotechnology (NASDAQ:VIR)

Vir Biotechnology (NASDAQ:VIRGet Free Report) and Werewolf Therapeutics (NASDAQ:HOWLGet Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current recommendations and price targets for Vir Biotechnology and Werewolf Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vir Biotechnology 1 0 8 1 2.90
Werewolf Therapeutics 1 4 2 0 2.14

Vir Biotechnology currently has a consensus price target of $19.89, indicating a potential upside of 113.40%. Werewolf Therapeutics has a consensus price target of $3.75, indicating a potential upside of 493.45%. Given Werewolf Therapeutics’ higher probable upside, analysts plainly believe Werewolf Therapeutics is more favorable than Vir Biotechnology.

Earnings & Valuation

This table compares Vir Biotechnology and Werewolf Therapeutics”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vir Biotechnology $68.56 million 18.97 -$521.96 million ($3.16) -2.95
Werewolf Therapeutics $1.88 million 16.32 -$70.51 million ($1.62) -0.39

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

Profitability

This table compares Vir Biotechnology and Werewolf Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vir Biotechnology -638.88% -49.31% -38.74%
Werewolf Therapeutics N/A -144.40% -71.70%

Risk & Volatility

Vir Biotechnology has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500. Comparatively, Werewolf Therapeutics has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Insider and Institutional Ownership

65.3% of Vir Biotechnology shares are owned by institutional investors. Comparatively, 64.8% of Werewolf Therapeutics shares are owned by institutional investors. 16.0% of Vir Biotechnology shares are owned by insiders. Comparatively, 23.6% of Werewolf Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Vir Biotechnology beats Werewolf Therapeutics on 9 of the 15 factors compared between the two stocks.

About Vir Biotechnology

(Get Free Report)

Vir Biotechnology, Inc., an immunology company, develops therapeutic products to treat and prevent serious infectious diseases. Its clinical development pipeline consists of product candidates targeting hepatitis delta virus (HDV), hepatitis B virus (HBV), and human immunodeficiency virus (HIV). The company’s preclinical candidates include those targeting influenza A and B, coronavirus disease 2019, respiratory syncytial virus (RSV) and human metapneumovirus (MPV), and human papillomavirus (HPV). The company has grant agreements with Bill & Melinda Gates Foundation and National Institutes of Health; an option and license agreement with Brii Biosciences Limited; a collaboration and license agreement with Alnylam Pharmaceuticals, Inc.; license agreements with MedImmune, LLC; collaboration with WuXi Biologics (Hong Kong) Limited and Glaxo Wellcome UK Ltd.; and a collaborative research agreement with GlaxoSmithKline Biologicals S.A, as well as license agreement with Sanofi for three clinical-stage masked T-cell engagers (TCEs) and exclusive use of the protease-cleavable masking platform for oncology and infectious diseases. It also has a manufacturing agreement with Samsung Biologics Co.,Ltd. The company was incorporated in 2016 and is headquartered in San Francisco, California.

About Werewolf Therapeutics

(Get Free Report)

Werewolf Therapeutics, Inc., a biopharmaceutical company, develops therapeutics engineered to stimulate the body's immune system for the treatment of cancer. The company, through its proprietary PREDATOR platform, designs conditionally activated molecules that stimulate adaptive and innate immunity for addressing the limitations of conventional proinflammatory immune therapies. Its lead product candidates are WTX-124, a conditionally activated Interleukin-2 INDUKINE molecule that is in Phase I/Ib clinical trial for the treatment of advanced or metastatic solid tumors; and WTX-330, a conditionally activated Interleukin-12 INDUKINE molecule, which is in Phase I clinical trial for the treatment of advanced or metastatic solid tumors and lymphoma. The company is also developing JZP898, a conditionally activated interferon alpha INDUKINE molecule for the treatment of cancer; and WTX-712, an activated Interleukin-21(IL-21) and WTX-518, an activated IL-18 (IL-18) INDUKINE molecule for the treatment of cancer. Werewolf Therapeutics, Inc. was incorporated in 2017 and is headquartered in Watertown, Massachusetts.

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