Monte Rosa Therapeutics (NASDAQ:GLUE – Get Free Report) and Twist Bioscience (NASDAQ:TWST – Get Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
Profitability
This table compares Monte Rosa Therapeutics and Twist Bioscience’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Monte Rosa Therapeutics | 11.54% | 8.28% | 5.07% |
| Twist Bioscience | -20.63% | -27.40% | -20.33% |
Volatility and Risk
Monte Rosa Therapeutics has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500. Comparatively, Twist Bioscience has a beta of 2.43, suggesting that its share price is 143% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Monte Rosa Therapeutics | 1 | 1 | 2 | 0 | 2.25 |
| Twist Bioscience | 2 | 0 | 10 | 0 | 2.67 |
Monte Rosa Therapeutics presently has a consensus target price of $16.33, suggesting a potential upside of 20.81%. Twist Bioscience has a consensus target price of $47.50, suggesting a potential upside of 82.20%. Given Twist Bioscience’s stronger consensus rating and higher probable upside, analysts clearly believe Twist Bioscience is more favorable than Monte Rosa Therapeutics.
Institutional and Insider Ownership
80.0% of Monte Rosa Therapeutics shares are owned by institutional investors. 6.9% of Monte Rosa Therapeutics shares are owned by insiders. Comparatively, 3.0% of Twist Bioscience shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Monte Rosa Therapeutics and Twist Bioscience”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Monte Rosa Therapeutics | $75.62 million | 11.64 | -$72.70 million | $0.32 | 42.25 |
| Twist Bioscience | $376.57 million | 4.23 | -$77.67 million | ($1.31) | -19.90 |
Monte Rosa Therapeutics has higher earnings, but lower revenue than Twist Bioscience. Twist Bioscience is trading at a lower price-to-earnings ratio than Monte Rosa Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
Monte Rosa Therapeutics beats Twist Bioscience on 9 of the 14 factors compared between the two stocks.
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.
About Twist Bioscience
Twist Bioscience Corporation engages in the manufacture and sale of synthetic DNA-based products. The company offers synthetic genes and gene fragments used in product development for therapeutics, diagnostics, chemicals/materials, food/agriculture, data storage, and various applications within academic research by biotech, pharma, industrial chemical, and agricultural companies, as well as academic labs; Oligo pools used in targeted NGS, CRISPR gene editing, mutagenesis experiments, DNA origami, DNA computing, data storage in DNA, and other applications; and immunoglobulin G proteins for customers focused on the pursuit of drug discovery and development. It also provides NGS tools comprising library preparation kits, human exome kits, and fixed and custom panels, as well as alliance panels, primarily used within diagnostic tests for various indications, population genetics research and biomarker discovery, translational research, microbiology, and applied markets research; and methylation detection kits for cancer, and rare and inherited disease study, as well as fast hybridization and full RNA sequencing workflow solution. In addition, the company provides synthetic SARS-CoV-2 RNA reference sequences as positive controls for the development of both NGS and reverse transcription-polymerase chain reaction assays; synthetic monkeypox controls; and various respiratory viral controls, including for influenzas, respiratory syncytial virus, rhinoviruses, SARS, MERS, and coronaviruses. Further, it offers SARS-CoV-2 Research Panels, such as the Twist Respiratory Virus Panel and the Pan-Viral Research Panel, for the detection of disease in a research setting; precision DNA libraries used for antibody engineering, affinity maturation, and humanization; and antibody optimization solution to enable simultaneous optimization of multiple characteristics of a given antibody. The company was incorporated in 2013 and is headquartered in South San Francisco, California.
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