Critical Comparison: Tectonic Therapeutic (NASDAQ:TECX) vs. Mesoblast (NASDAQ:MESO)

Tectonic Therapeutic (NASDAQ:TECX) and Mesoblast (NASDAQ:MESO) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Tectonic Therapeutic and Mesoblast”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tectonic Therapeutic	N/A	N/A	$12.16 million	($5.17)	-7.91
Mesoblast	$5.90 million	164.11	-$87.96 million	N/A	N/A

Tectonic Therapeutic has higher earnings, but lower revenue than Mesoblast.

Volatility & Risk

Tectonic Therapeutic has a beta of 2.63, meaning that its share price is 163% more volatile than the S&P 500. Comparatively, Mesoblast has a beta of 3.47, meaning that its share price is 247% more volatile than the S&P 500.

Profitability

This table compares Tectonic Therapeutic and Mesoblast’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tectonic Therapeutic	N/A	-41.05%	-37.33%
Mesoblast	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Tectonic Therapeutic and Mesoblast, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tectonic Therapeutic	0	0	4	1	3.20
Mesoblast	0	0	4	0	3.00

Tectonic Therapeutic currently has a consensus price target of $60.00, suggesting a potential upside of 46.77%. Mesoblast has a consensus price target of $11.50, suggesting a potential upside of 35.61%. Given Tectonic Therapeutic’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Tectonic Therapeutic is more favorable than Mesoblast.

Institutional and Insider Ownership

62.6% of Tectonic Therapeutic shares are held by institutional investors. Comparatively, 1.4% of Mesoblast shares are held by institutional investors. 9.2% of Tectonic Therapeutic shares are held by insiders. Comparatively, 18.8% of Mesoblast shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

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 Mesoblast

Mesoblast Limited engages in the development of regenerative medicine products in Australia, the United States, Singapore, and Switzerland. The company offers products in the areas of cardiovascular, spine orthopedic disorder, oncology, hematology, and immune-mediated and inflammatory diseases. Its proprietary regenerative medicine technology platform is based on specialized cells known as mesenchymal lineage cells. The company offers Remestemcel-L that is in Phase III clinical trials for the treatment of systemic inflammatory diseases, including steroid refractory acute graft versus host disease, acute respiratory distress syndrome, and biologic refractory inflammatory bowel disease; and Remestemcel-L, which is in Phase III clinical trials to treat chronic heart failure and chronic low back pain due to degenerative disc disease. It is also developing MPC-300-IV to treat biologic refractory rheumatoid arthritis diabetic nephropathy; and MPC-25-IC for the treatment or prevention of acute myocardial infarction. It has strategic partnerships with Tasly Pharmaceutical Group to offer MPC-150-IM for heart failure and MPC-25-IC for heart attacks in China; JCR Pharmaceuticals Co. Ltd. to treat wound healing in patients with epidermolysis bullosa; and Grünenthal to develops and commercializes cell therapy for the treatment of chronic low back pain. The company was incorporated in 2004 and is headquartered in Melbourne, Australia.