Reviewing Surrozen (NASDAQ:SRZN) & Tectonic Therapeutic (NASDAQ:TECX)

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

Institutional & Insider Ownership

62.6% of Tectonic Therapeutic shares are held by institutional investors. Comparatively, 66.6% of Surrozen shares are held by institutional investors. 9.2% of Tectonic Therapeutic shares are held by insiders. Comparatively, 43.5% of Surrozen shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Tectonic Therapeutic has a beta of 2.63, suggesting that its share price is 163% more volatile than the S&P 500. Comparatively, Surrozen has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tectonic Therapeutic	N/A	-35.53%	-31.97%
Surrozen	N/A	-120.51%	-54.68%

Analyst Ratings

This is a summary of current ratings and recommmendations for Tectonic Therapeutic and Surrozen, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tectonic Therapeutic	0	0	5	1	3.17
Surrozen	0	0	1	0	3.00

Tectonic Therapeutic presently has a consensus target price of $72.25, suggesting a potential upside of 76.65%. Surrozen has a consensus target price of $45.00, suggesting a potential upside of 272.52%. Given Surrozen’s higher probable upside, analysts plainly believe Surrozen is more favorable than Tectonic Therapeutic.

Valuation and Earnings

This table compares Tectonic Therapeutic and Surrozen”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	($5.89)	-6.94
Surrozen	$12.50 million	3.14	-$43.04 million	N/A	N/A

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

Summary

Tectonic Therapeutic beats Surrozen on 7 of the 11 factors compared between the two stocks.

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 Surrozen

Surrozen, Inc., a clinical stage biotechnology company, discovers and develops drug candidates to selectively modulate the Wnt pathway for tissue repair. The company is developing antibody-based therapeutics which targets various disease areas, including diseases of the intestine, liver, retina, cornea, lung, kidney, cochlea, skin, pancreas, and central nervous system. Its products in pipeline include SZN-043, a hepatocyte-specific R-spondin mimetic bispecific fusion protein, which is in Phase 1b clinical trial for the treatment of severe liver diseases, including alcohol-associated hepatitis. The company develops SZN-413, a Fzd4 targeted bi-specific antibody for the treatment of retinal vascular associated diseases. Surrozen, Inc. has collaboration and license agreement with Boehringer Ingelheim International GmbH to research, develop, and commercialize Fzd4 bi-specific antibodies. Surrozen, Inc. is based in South San Francisco, California.