Critical Review: Metagenomi (NASDAQ:MGX) & TRACON Pharmaceuticals (NASDAQ:TCON)

Metagenomi (NASDAQ:MGX) and TRACON Pharmaceuticals (NASDAQ:TCON) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Earnings & Valuation

This table compares Metagenomi and TRACON Pharmaceuticals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Metagenomi	$55.08 million	1.45	-$68.25 million	N/A	N/A
TRACON Pharmaceuticals	$12.05 million	0.01	-$3.59 million	$3.73	0.01

TRACON Pharmaceuticals has lower revenue, but higher earnings than Metagenomi.

Institutional and Insider Ownership

11.6% of TRACON Pharmaceuticals shares are held by institutional investors. 5.3% of TRACON Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Metagenomi and TRACON Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Metagenomi	-134.27%	-43.23%	-18.86%
TRACON Pharmaceuticals	N/A	-237.65%	57.29%

Analyst Ratings

This is a summary of recent recommendations for Metagenomi and TRACON Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Metagenomi	0	1	6	0	2.86
TRACON Pharmaceuticals	0	1	0	0	2.00

Metagenomi currently has a consensus target price of $15.50, suggesting a potential upside of 627.70%. TRACON Pharmaceuticals has a consensus target price of $60.00, suggesting a potential upside of 159,900.00%. Given TRACON Pharmaceuticals’ higher probable upside, analysts plainly believe TRACON Pharmaceuticals is more favorable than Metagenomi.

Summary

TRACON Pharmaceuticals beats Metagenomi on 6 of the 11 factors compared between the two stocks.

About Metagenomi

Metagenomi, Inc., a genetic medicines company, develops therapeutics for patients using metagenomics-derived genome editing toolbox in the United States. The company's genome editing toolbox includes programmable nucleases, base editors, and RNA and DNA-mediated integration systems, such as prime editing systems and clustered regularly interspaced short palindromic repeat-associated transposases. It has a strategic collaboration and license agreement with ModernaTX, Inc. focusing on new genome editing system for in vivo human therapeutic applications; a development, option, and license agreement with Affini-T Therapeutics, Inc. to develop and commercialize gene edited T-cell receptor-based therapeutic products in the field of treatment, prevention, or diagnosis of human cancer; and a collaboration and license agreement with Ionis Pharmaceuticals, Inc. to research, develop, and commercialize investigational medicines using genome editing technologies. The company was incorporated in 2016 and is based in Emeryville, California.

About TRACON Pharmaceuticals

TRACON Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of novel targeted therapeutics for cancer in the United States. Its clinical stage products include envafolimab (KN035), a PD-L1 single-domain antibody for the treatment of refractory soft tissue sarcoma; and YH001, an investigational humanized cytotoxic T-lymphocyte-associated protein 4 IgG1 monoclonal antibody that is in Phase I clinical trial for the treatment of various cancer indications. The company's clinical stage products also include TRC102, a small molecule that is in Phase II clinical trial for the treatment of mesothelioma, and in Phase I clinical trial to treat solid tumors, lung cancer, and glioblastoma; and TJ004309, a CD73 antibody that is in Phase I clinical development for the treatment of solid tumors. In addition, it is developing bispecific antibodies, which are in preclinical stage. It has collaboration and license agreements with 3D Medicines Co., Ltd. and Jiangsu Alphamab Biopharmaceuticals Co., Ltd. for the development of envafolimab; I-Mab Biopharma for the development of CD73 antibody TJ004309 and bispecific antibodies; and cooperative research and development agreement with National Cancer Institute. The company was formerly known as Lexington Pharmaceuticals, Inc. and changed its name to TRACON Pharmaceuticals, Inc. in March 2005. TRACON Pharmaceuticals, Inc. was incorporated in 2004 and is headquartered in San Diego, California.