Critical Analysis: Kymera Therapeutics (NASDAQ:KYMR) vs. Quince Therapeutics (NASDAQ:QNCX)

Kymera Therapeutics (NASDAQ:KYMR) and Quince Therapeutics (NASDAQ:QNCX) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Insider and Institutional Ownership

30.8% of Quince Therapeutics shares are held by institutional investors. 15.8% of Kymera Therapeutics shares are held by company insiders. Comparatively, 16.8% of Quince Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Kymera Therapeutics and Quince Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kymera Therapeutics	0	6	6	0	2.50
Quince Therapeutics	0	0	0	0	N/A

Kymera Therapeutics currently has a consensus target price of $42.70, indicating a potential upside of 41.30%. Given Kymera Therapeutics’ higher possible upside, research analysts plainly believe Kymera Therapeutics is more favorable than Quince Therapeutics.

Profitability

This table compares Kymera Therapeutics and Quince Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kymera Therapeutics	-194.67%	-31.92%	-23.98%
Quince Therapeutics	N/A	-36.72%	-24.12%

Volatility & Risk

Kymera Therapeutics has a beta of 2.25, suggesting that its stock price is 125% more volatile than the S&P 500. Comparatively, Quince Therapeutics has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Earnings and Valuation

This table compares Kymera Therapeutics and Quince Therapeutics’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kymera Therapeutics	$79.41 million	23.35	-$146.96 million	($2.51)	-12.04
Quince Therapeutics	N/A	N/A	-$31.39 million	($0.76)	-0.94

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

About Kymera Therapeutics

Kymera Therapeutics, Inc., a biopharmaceutical company, focuses on discovering and developing novel small molecule therapeutics that selectively degrade disease-causing proteins by harnessing the body's own natural protein degradation system. It engages in developing IRAK4 program, which is in Phase II clinical trial for the treatment of immunology-inflammation diseases, including hidradenitis suppurativa, atopic dermatitis; STAT3 program for the treatment of hematologic malignancies and solid tumors, as well as autoimmune diseases and fibrosis; and MDM2 program to treat hematological malignancies and solid tumors. The company develops STAT6, a Type 2 inflammation in allergic diseases; and TYK2, a treatment for inflammatory bowel disease, psoriasis, psoriatic arthritis, and lupus. The company was incorporated in 2015 and is headquartered in Watertown, Massachusetts.

About Quince Therapeutics

Quince Therapeutics, Inc., a biopharmaceutical company, focuses on acquiring, developing, and commercializing therapeutics for patients with debilitating and rare diseases. The company's lead asset candidature comprises EryDex for the treatment of rare pediatric neurodegenerative disease, including A-T, an inherited autosomal recessive neurodegenerative and immunodeficiency disorder caused by mutations in ATM gene. Its AIDE technology platform, a drug/device combination platform that uses an automated process to encapsulate a drug into a patient's own red blood cells, as well as consists of an automated equipment the RCL, a sterile single-use consumable treatment kit comprising EryKit, Syringe Kit, drugs, and process solutions. The company was formerly known as Cortexyme, Inc. and changed its name to Quince Therapeutics, Inc. in August 2022. Quince Therapeutics, Inc. was incorporated in 2012 and is headquartered in South San Francisco, California.