Financial Analysis: Tyra Biosciences (NASDAQ:TYRA) and Foghorn Therapeutics (NASDAQ:FHTX)

Foghorn Therapeutics (NASDAQ:FHTX) and Tyra Biosciences (NASDAQ:TYRA) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Volatility & Risk

Foghorn Therapeutics has a beta of 3.14, indicating that its stock price is 214% more volatile than the S&P 500. Comparatively, Tyra Biosciences has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Institutional & Insider Ownership

61.5% of Foghorn Therapeutics shares are owned by institutional investors. Comparatively, 84.1% of Tyra Biosciences shares are owned by institutional investors. 9.1% of Foghorn Therapeutics shares are owned by company insiders. Comparatively, 15.4% of Tyra Biosciences shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Foghorn Therapeutics and Tyra Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Foghorn Therapeutics	-357.53%	N/A	-30.98%
Tyra Biosciences	N/A	-24.56%	-23.31%

Earnings and Valuation

This table compares Foghorn Therapeutics and Tyra Biosciences”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Foghorn Therapeutics	$25.52 million	17.50	-$98.43 million	($1.92)	-4.18
Tyra Biosciences	N/A	N/A	-$69.13 million	($1.61)	-9.85

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Foghorn Therapeutics and Tyra Biosciences, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Foghorn Therapeutics	0	1	4	0	2.80
Tyra Biosciences	0	0	5	0	3.00

Foghorn Therapeutics presently has a consensus price target of $16.00, indicating a potential upside of 99.25%. Tyra Biosciences has a consensus price target of $31.00, indicating a potential upside of 95.46%. Given Foghorn Therapeutics’ higher probable upside, equities research analysts clearly believe Foghorn Therapeutics is more favorable than Tyra Biosciences.

Summary

Tyra Biosciences beats Foghorn Therapeutics on 8 of the 13 factors compared between the two stocks.

About Foghorn Therapeutics

Foghorn Therapeutics Inc., a clinical-stage biopharmaceutical company, engages in the discovery and development of medicines targeting genetically determined dependencies within the chromatin regulatory system in the United States. The company uses its proprietary Gene Traffic Control platform to identify, validate, and potentially drug targets within the system. It develops FHD-286, a small molecule inhibitor of the enzymatic activity of BRG1 and BRM that is in phase I for the treatment of relapsed and/or refractory acute myeloid leukemia/myelodysplastic syndrome. The company is also developing therapies for mutant cancers, such as Non-Small Cell Lung, bladder, endometrial, colorectal, and melanoma cancers; and dependent cancers, including prostate cancer and diffuse large b-cell lymphoma. It has a research collaboration and license agreement with Merck Sharp & Dohme Corp. to discover and develop novel oncology therapeutics against a transcription factor target; and Eli Lilly and Company for developing FHD-909, a selective ATPase inhibitor of BRM. Foghorn Therapeutics Inc. was incorporated in 2015 and is headquartered in Cambridge, Massachusetts.

About Tyra Biosciences

Tyra Biosciences, Inc., a clinical-stage biotechnology company, develops precision medicines for fibroblast growth factor receptor (FGFR) biology in the United States. The company offers SNÅP, a precision medicine platform that enables drug design through iterative molecular snapshots to predict genetic alterations for developing therapies targeting oncology and genetically defined conditions. Its lead product candidate is TYRA-300, which is in Phase 1/2 clinical trials for the treatment of patients with metastatic urothelial carcinoma and other solid tumors. The company is also developing TYRA-300 for skeletal conditions, including achondroplasia, hypochondroplasia, thanatophoric dysplasia, and other FGFR3-driven genetic syndromes; TYRA-200, a candidate in Phase 1 clinical trial for bile duct and solid tumors; and TYRA-430 for the treatment of hepatocellular carcinoma. The company was incorporated in 2018 and is headquartered in Carlsbad, California.