Analyzing Fresh Tracks Therapeutics (NASDAQ:FRTX) and Tectonic Therapeutic (NASDAQ:TECX)

Fresh Tracks Therapeutics (NASDAQ:FRTX) and Tectonic Therapeutic (NASDAQ:TECX) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

Volatility & Risk

Fresh Tracks Therapeutics has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Tectonic Therapeutic has a beta of 2.62, indicating that its share price is 162% more volatile than the S&P 500.

Insider and Institutional Ownership

25.0% of Fresh Tracks Therapeutics shares are held by institutional investors. Comparatively, 62.6% of Tectonic Therapeutic shares are held by institutional investors. 0.2% of Fresh Tracks Therapeutics shares are held by company insiders. Comparatively, 9.2% of Tectonic Therapeutic shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Fresh Tracks Therapeutics and Tectonic Therapeutic”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fresh Tracks Therapeutics	$8.01 million	0.69	-$5.69 million	($1.41)	-0.66
Tectonic Therapeutic	N/A	N/A	$12.16 million	($5.89)	-6.04

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Fresh Tracks Therapeutics and Tectonic Therapeutic, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fresh Tracks Therapeutics	0	0	0	0	0.00
Tectonic Therapeutic	0	0	5	1	3.17

Tectonic Therapeutic has a consensus target price of $80.50, suggesting a potential upside of 126.31%. Given Tectonic Therapeutic’s stronger consensus rating and higher probable upside, analysts clearly believe Tectonic Therapeutic is more favorable than Fresh Tracks Therapeutics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fresh Tracks Therapeutics	N/A	N/A	N/A
Tectonic Therapeutic	N/A	-35.53%	-31.97%

Summary

Tectonic Therapeutic beats Fresh Tracks Therapeutics on 8 of the 13 factors compared between the two stocks.

About Fresh Tracks Therapeutics

Fresh Tracks Therapeutics, Inc. does not have significant operations. Previously, the company was engaged in the development of various prescription therapeutics for the treatment of autoimmune, inflammatory, and other debilitating diseases in the United States. Fresh Tracks Therapeutics, Inc. was founded in 2009 and is headquartered in Boulder, Colorado.

About Tectonic Therapeutic

Tectonic Therapeutic, Inc. engages in discovery and development of therapeutic proteins & antibodies. The company was founded by Timothy A. Springer and Andrew Kruse in 2019 and is headquartered in Watertown, MA.