Tectonic Therapeutic (NASDAQ:TECX – Get Free Report) and Relay Therapeutics (NASDAQ:RLAY – Get Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Profitability
This table compares Tectonic Therapeutic and Relay Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tectonic Therapeutic | N/A | -35.53% | -31.97% |
| Relay Therapeutics | N/A | -45.75% | -40.75% |
Valuation & Earnings
This table compares Tectonic Therapeutic and Relay Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tectonic Therapeutic | N/A | N/A | $12.16 million | ($5.89) | -8.46 |
| Relay Therapeutics | $10.01 million | 70.76 | -$341.97 million | ($2.61) | -1.62 |
Risk & Volatility
Tectonic Therapeutic has a beta of 2.6, suggesting that its stock price is 160% more volatile than the S&P 500. Comparatively, Relay Therapeutics has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Tectonic Therapeutic and Relay Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tectonic Therapeutic | 0 | 0 | 5 | 1 | 3.17 |
| Relay Therapeutics | 0 | 1 | 10 | 0 | 2.91 |
Tectonic Therapeutic presently has a consensus target price of $72.25, suggesting a potential upside of 44.96%. Relay Therapeutics has a consensus target price of $20.50, suggesting a potential upside of 384.63%. Given Relay Therapeutics’ higher possible upside, analysts clearly believe Relay Therapeutics is more favorable than Tectonic Therapeutic.
Institutional and Insider Ownership
62.6% of Tectonic Therapeutic shares are owned by institutional investors. Comparatively, 97.0% of Relay Therapeutics shares are owned by institutional investors. 9.2% of Tectonic Therapeutic shares are owned by company insiders. Comparatively, 4.3% of Relay Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Tectonic Therapeutic beats Relay Therapeutics on 7 of the 13 factors compared between the two stocks.
About Tectonic Therapeutic
Avrobio, Inc. is a bio-technology company. It develops step-change cell and gene therapies for the treatment of cancer and rare disease. The company operates primarily in the United States and Canada. Avrobio, Inc. is based in MA, United States.
About Relay Therapeutics
Relay Therapeutics, Inc. operates as a clinical-stage precision medicines company. It engages in transforming the drug discovery process with an initial focus on enhancing small molecule therapeutic discovery in targeted oncology and genetic disease indications. The company’s lead product candidates include RLY-4008, an oral small molecule inhibitor of fibroblast growth factor receptor 2 (FGFR2), which is in a first-in-human clinical trial for patients with advanced or metastatic FGFR2-altered solid tumors; RLY-2608, a lead mutant-PI3Ka inhibitor program that targets phosphoinostide 3 kinase alpha; and Migoprotafib (GDC-1971), an oral, small molecule, potent and selective inhibitor of the protein tyrosine phosphatase SHP2 that binds and stabilizes Src homology region 2 domain-containing phosphatase-2 (SHP2) as a monotherapy in patients with advanced or metastatic solid tumors. In addition, it has collaboration and license agreements with D. E. Shaw Research, LLC to research certain biological targets through the use of D. E. Shaw Research computational modeling capabilities focused on analysis of protein motion to develop and commercialize compounds and products directed to such targets; and Genentech, Inc. for the development and commercialization of GDC-1971. The company was formerly known as Allostery, Inc. and changed its name to Relay Therapeutics, Inc. in December 2015. Relay Therapeutics, Inc. was incorporated in 2015 and is headquartered in Cambridge, Massachusetts.
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