Head-To-Head Comparison: Arbutus Biopharma (NASDAQ:ABUS) & TransCode Therapeutics (NASDAQ:RNAZ)

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for TransCode Therapeutics and Arbutus Biopharma, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TransCode Therapeutics	0	0	1	0	3.00
Arbutus Biopharma	0	0	4	0	3.00

TransCode Therapeutics presently has a consensus price target of $20.00, suggesting a potential upside of 93.05%. Arbutus Biopharma has a consensus price target of $5.50, suggesting a potential upside of 67.17%. Given TransCode Therapeutics’ higher possible upside, research analysts plainly believe TransCode Therapeutics is more favorable than Arbutus Biopharma.

Valuation and Earnings

This table compares TransCode Therapeutics and Arbutus Biopharma”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TransCode Therapeutics	N/A	N/A	-$18.55 million	N/A	N/A
Arbutus Biopharma	$18.14 million	34.37	-$72.85 million	($0.43)	-7.65

TransCode Therapeutics has higher earnings, but lower revenue than Arbutus Biopharma.

Volatility and Risk

TransCode Therapeutics has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Arbutus Biopharma has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500.

Institutional & Insider Ownership

43.8% of Arbutus Biopharma shares are held by institutional investors. 2.8% of TransCode Therapeutics shares are held by insiders. Comparatively, 4.0% of Arbutus Biopharma shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares TransCode Therapeutics and Arbutus Biopharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TransCode Therapeutics	N/A	-649.03%	-281.34%
Arbutus Biopharma	-1,137.65%	-68.18%	-51.55%

Summary

Arbutus Biopharma beats TransCode Therapeutics on 7 of the 10 factors compared between the two stocks.

About TransCode Therapeutics

TransCode Therapeutics, Inc., a ribonucleic acid (RNA) oncology company, focuses on the development and commercialization of drugs and diagnostics for treating and identifying various cancers. Its lead therapeutic candidate is TTX-MC138 that targets microRNA-10b, a master regulator of metastatic cell viability in a range of cancers, including breast, pancreatic, ovarian, colon cancer, glioblastomas, and others. The company is also developing TTX-siPDL1, an siRNA-based modulator of programmed death-ligand 1; and TTX-siLIN28B, an siRNA-based inhibitor of RNA-binding protein LIN28B. In addition, the company developing TTX-RIGA, an RNA- based agonist of the retinoic acid-inducible gene I targeting activation of innate immunity in the tumor microenvironment; TTX-CRISPR, a CRISPR/Cas9-based therapy platform for the repair or elimination of cancer-causing genes inside tumor cells; and TTX-mRNA, an mRNA-based platform for the development of cancer vaccines that activate cytotoxic immune responses against tumor cells. TransCode Therapeutics, Inc. was incorporated in 2016 and is based in Boston, Massachusetts.

About Arbutus Biopharma

Arbutus Biopharma Corporation, a biopharmaceutical company, develops novel therapeutics for chronic Hepatitis B virus (HBV) infection in the United States. Its HBV product pipeline consists of imdusiran (AB-729), a proprietary subcutaneously-delivered RNAi therapeutic product candidate that suppresses all HBV antigens, including HBsAg expression. The company’s research and development programs include AB-101, an oral PD-L1 inhibitor to reawaken patients’ HBV-specific immune system; and small molecule antiviral medicines to treat coronaviruses, including COVID-19. It has licensing agreements with Gritstone Oncology, Inc; Alnylam Pharmaceuticals, Inc.; Qilu Pharmaceuticals Co, Ltd; Assembly Biosciences, Inc.; Acuitas Therapeutics, Inc.; and Antios Therapeutics, Inc. Arbutus Biopharma Corporation also has a clinical collaboration agreement with Barinthus Biotherapeutics plc to evaluate VTP-300. The company was formerly known as Tekmira Pharmaceuticals Corporation and changed its name to Arbutus Biopharma Corporation in July 2015. Arbutus Biopharma Corporation is headquartered in Warminster, Pennsylvania.