Comparing Tenaya Therapeutics (NASDAQ:TNYA) & Atea Pharmaceuticals (NASDAQ:AVIR)

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Atea Pharmaceuticals and Tenaya Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atea Pharmaceuticals	1	0	0	1	2.50
Tenaya Therapeutics	1	0	5	1	2.86

Tenaya Therapeutics has a consensus target price of $4.00, indicating a potential upside of 389.60%. Given Tenaya Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Tenaya Therapeutics is more favorable than Atea Pharmaceuticals.

Institutional and Insider Ownership

86.7% of Atea Pharmaceuticals shares are owned by institutional investors. Comparatively, 90.5% of Tenaya Therapeutics shares are owned by institutional investors. 21.6% of Atea Pharmaceuticals shares are owned by insiders. Comparatively, 2.5% of Tenaya Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Atea Pharmaceuticals and Tenaya Therapeutics”s top-line 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	-$158.35 million	($2.11)	-2.31
Tenaya Therapeutics	$225,000.00	787.95	-$90.60 million	($0.47)	-1.74

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

Volatility and Risk

Atea Pharmaceuticals has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500. Comparatively, Tenaya Therapeutics has a beta of 2.83, indicating that its stock price is 183% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Atea Pharmaceuticals	N/A	-57.01%	-51.49%
Tenaya Therapeutics	N/A	-80.56%	-65.21%

Summary

Tenaya Therapeutics beats Atea Pharmaceuticals on 9 of the 12 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 Tenaya Therapeutics

Tenaya Therapeutics, Inc., a biotechnology company, discovers, develops, and delivers therapies for heart disease in the United States. It develops its products through gene editing, cellular regeneration, and gene addition. The company is developing TN-201, a gene therapy for myosin binding protein C3-associated hypertrophic cardiomyopathy which is in phase 1 clinical trial; TN-301, a small molecule for heart failure with preserved ejection fraction which is in phase 1 clinical trial; and TN-401, a gene therapy for plakophilin 2-associated arrhythmogenic right ventricular cardiomyopathy which is in preclinical stage. It also develops an adeno-associated virus-based gene therapy designed to deliver the dworf gene for patient with dilated cardiomyopathy; and reprogramming program for heart failure due to prior myocardial infarction. Tenaya Therapeutics, Inc. was incorporated in 2016 and is headquartered in South San Francisco, California.