Arbutus Biopharma (NASDAQ:ABUS – Get Free Report) and Monte Rosa Therapeutics (NASDAQ:GLUE – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.
Risk and Volatility
Arbutus Biopharma has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Monte Rosa Therapeutics has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Arbutus Biopharma and Monte Rosa Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arbutus Biopharma | 0 | 1 | 1 | 0 | 2.50 |
| Monte Rosa Therapeutics | 1 | 1 | 6 | 1 | 2.78 |
Valuation & Earnings
This table compares Arbutus Biopharma and Monte Rosa Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arbutus Biopharma | $14.08 million | 72.88 | -$33.50 million | $0.79 | 6.56 |
| Monte Rosa Therapeutics | $28.73 million | 42.38 | -$38.63 million | ($1.76) | -8.11 |
Arbutus Biopharma has higher earnings, but lower revenue than Monte Rosa Therapeutics. Monte Rosa Therapeutics is trading at a lower price-to-earnings ratio than Arbutus Biopharma, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
43.8% of Arbutus Biopharma shares are owned by institutional investors. Comparatively, 80.0% of Monte Rosa Therapeutics shares are owned by institutional investors. 19.9% of Arbutus Biopharma shares are owned by insiders. Comparatively, 6.4% of Monte Rosa Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Arbutus Biopharma and Monte Rosa Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Arbutus Biopharma | 84.22% | 90.98% | 82.34% |
| Monte Rosa Therapeutics | -560.85% | -43.31% | -27.59% |
Summary
Arbutus Biopharma beats Monte Rosa Therapeutics on 8 of the 15 factors compared between the two stocks.
About Arbutus Biopharma
Arbutus Biopharma Corporation, a biopharmaceutical company, develops novel therapeutics for chronic Hepatitis B virus (HBV) infection in the United States. Its HBV product pipeline consists of imdusiran (AB-729), a proprietary subcutaneously-delivered RNAi therapeutic product candidate that suppresses all HBV antigens, including HBsAg expression. The company’s research and development programs include AB-101, an oral PD-L1 inhibitor to reawaken patients’ HBV-specific immune system; and small molecule antiviral medicines to treat coronaviruses, including COVID-19. It has licensing agreements with Gritstone Oncology, Inc; Alnylam Pharmaceuticals, Inc.; Qilu Pharmaceuticals Co, Ltd; Assembly Biosciences, Inc.; Acuitas Therapeutics, Inc.; and Antios Therapeutics, Inc. Arbutus Biopharma Corporation also has a clinical collaboration agreement with Barinthus Biotherapeutics plc to evaluate VTP-300. The company was formerly known as Tekmira Pharmaceuticals Corporation and changed its name to Arbutus Biopharma Corporation in July 2015. Arbutus Biopharma Corporation is headquartered in Warminster, Pennsylvania.
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.
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