Head to Head Contrast: Biomea Fusion (NASDAQ:BMEA) and Tango Therapeutics (NASDAQ:TNGX)

Tango Therapeutics (NASDAQ:TNGX) and Biomea Fusion (NASDAQ:BMEA) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Insider and Institutional Ownership

79.0% of Tango Therapeutics shares are owned by institutional investors. Comparatively, 96.7% of Biomea Fusion shares are owned by institutional investors. 6.3% of Tango Therapeutics shares are owned by insiders. Comparatively, 27.6% of Biomea Fusion shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Tango Therapeutics has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, Biomea Fusion has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Tango Therapeutics and Biomea Fusion, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tango Therapeutics	0	0	7	0	3.00
Biomea Fusion	0	2	9	2	3.00

Tango Therapeutics presently has a consensus target price of $12.33, suggesting a potential upside of 774.70%. Biomea Fusion has a consensus target price of $23.91, suggesting a potential upside of 1,266.23%. Given Biomea Fusion’s higher probable upside, analysts clearly believe Biomea Fusion is more favorable than Tango Therapeutics.

Profitability

This table compares Tango Therapeutics and Biomea Fusion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tango Therapeutics	-284.42%	-49.64%	-32.00%
Biomea Fusion	N/A	-118.90%	-93.66%

Valuation & Earnings

This table compares Tango Therapeutics and Biomea Fusion”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tango Therapeutics	$42.07 million	3.62	-$101.74 million	($1.21)	-1.17
Biomea Fusion	N/A	N/A	-$117.25 million	($3.84)	-0.46

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

Summary

Biomea Fusion beats Tango Therapeutics on 7 of the 13 factors compared between the two stocks.

About Tango Therapeutics

Tango Therapeutics, Inc., a biotechnology company, discovers and develops drugs for the treatment of cancer. Its lead program is TNG908, a synthetic lethal small molecule inhibitor of protein arginine methyltransferase 5 that is being developed as a treatment for cancers with methylthioadenosine phosphorylase deletions. The company develops TNG462, an oral small molecule methylthioadenosine-cooperative inhibitor for the treatment for cancers with methylthioadenosine phosphorylase deletions; TNG260, a co-repressor of repressor element-1 silencing transcription -selective inhibitor; TNG348, an ubiquitin-specific protease 1 inhibitor to treat patients with BRCA1 or BRCA2-mutant cancers; and Target 3 for STK11-mutant cancers. It has a strategic collaboration with Gilead Sciences, Inc. for the discovery, development, and commercialization of a pipeline of therapies for patients with cancer. Tango Therapeutics, Inc. was founded in 2017 and is headquartered in Boston, Massachusetts.

About Biomea Fusion

Biomea Fusion, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery and development of covalent small molecule drugs to treat patients with genetically defined cancers and metabolic diseases. Its lead product candidate is BMF-219, a covalent inhibitor of menin for treating patients with liquid and solid tumors and type 2 diabetes. The company was incorporated in 2017 and is headquartered in Redwood City, California.