Comparing TransCode Therapeutics (NASDAQ:RNAZ) and Arbutus Biopharma (NASDAQ:ABUS)

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

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.

Insider and Institutional 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares TransCode Therapeutics and Arbutus Biopharma”s revenue, earnings per share 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	35.10	-$72.85 million	($0.43)	-7.81

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

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%

Analyst Ratings

This is a breakdown of current ratings and target prices for TransCode Therapeutics and Arbutus Biopharma, as provided by MarketBeat.

	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 currently has a consensus price target of $20.00, suggesting a potential upside of 86.92%. Arbutus Biopharma has a consensus price target of $5.50, suggesting a potential upside of 63.69%. Given TransCode Therapeutics’ higher probable upside, research analysts plainly believe TransCode Therapeutics is more favorable than Arbutus Biopharma.

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.