Head to Head Analysis: Tectonic Therapeutic (NASDAQ:TECX) versus Mesoblast (NASDAQ:MESO)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tectonic Therapeutic	N/A	-41.05%	-37.33%
Mesoblast	N/A	N/A	N/A

Valuation & Earnings

This table compares Tectonic Therapeutic and Mesoblast”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tectonic Therapeutic	N/A	N/A	$12.16 million	($5.17)	-8.10
Mesoblast	$5.90 million	161.40	-$87.96 million	N/A	N/A

Tectonic Therapeutic has higher earnings, but lower revenue than Mesoblast.

Institutional and Insider Ownership

62.6% of Tectonic Therapeutic shares are held by institutional investors. Comparatively, 1.4% of Mesoblast shares are held by institutional investors. 9.2% of Tectonic Therapeutic shares are held by insiders. Comparatively, 18.8% of Mesoblast shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Tectonic Therapeutic and Mesoblast, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tectonic Therapeutic	0	0	4	1	3.20
Mesoblast	0	0	4	0	3.00

Tectonic Therapeutic currently has a consensus target price of $60.00, suggesting a potential upside of 43.30%. Mesoblast has a consensus target price of $11.50, suggesting a potential upside of 37.89%. Given Tectonic Therapeutic’s stronger consensus rating and higher probable upside, analysts plainly believe Tectonic Therapeutic is more favorable than Mesoblast.

Risk and Volatility

Tectonic Therapeutic has a beta of 2.6, indicating that its share price is 160% more volatile than the S&P 500. Comparatively, Mesoblast has a beta of 3.47, indicating that its share price is 247% more volatile than the S&P 500.

About Tectonic Therapeutic

Avrobio, Inc. is a bio-technology company. It develops step-change cell and gene therapies for the treatment of cancer and rare disease. The company operates primarily in the United States and Canada. Avrobio, Inc. is based in MA, United States.

About Mesoblast

Mesoblast Limited engages in the development of regenerative medicine products in Australia, the United States, Singapore, and Switzerland. The company offers products in the areas of cardiovascular, spine orthopedic disorder, oncology, hematology, and immune-mediated and inflammatory diseases. Its proprietary regenerative medicine technology platform is based on specialized cells known as mesenchymal lineage cells. The company offers Remestemcel-L that is in Phase III clinical trials for the treatment of systemic inflammatory diseases, including steroid refractory acute graft versus host disease, acute respiratory distress syndrome, and biologic refractory inflammatory bowel disease; and Remestemcel-L, which is in Phase III clinical trials to treat chronic heart failure and chronic low back pain due to degenerative disc disease. It is also developing MPC-300-IV to treat biologic refractory rheumatoid arthritis diabetic nephropathy; and MPC-25-IC for the treatment or prevention of acute myocardial infarction. It has strategic partnerships with Tasly Pharmaceutical Group to offer MPC-150-IM for heart failure and MPC-25-IC for heart attacks in China; JCR Pharmaceuticals Co. Ltd. to treat wound healing in patients with epidermolysis bullosa; and Grünenthal to develops and commercializes cell therapy for the treatment of chronic low back pain. The company was incorporated in 2004 and is headquartered in Melbourne, Australia.