Analyzing Beam Therapeutics (NASDAQ:BEAM) and Monte Rosa Therapeutics (NASDAQ:GLUE)

Monte Rosa Therapeutics (NASDAQ:GLUE) and Beam Therapeutics (NASDAQ:BEAM) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Earnings and Valuation

This table compares Monte Rosa Therapeutics and Beam Therapeutics’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Monte Rosa Therapeutics	N/A	N/A	-$108.50 million	($2.69)	-1.20
Beam Therapeutics	$81.55 million	30.10	-$289.09 million	($4.17)	-7.22

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

Insider and Institutional Ownership

80.1% of Monte Rosa Therapeutics shares are owned by institutional investors. Comparatively, 80.6% of Beam Therapeutics shares are owned by institutional investors. 5.3% of Monte Rosa Therapeutics shares are owned by insiders. Comparatively, 4.4% of Beam Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Monte Rosa Therapeutics and Beam Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Monte Rosa Therapeutics	0	1	2	0	2.67
Beam Therapeutics	0	6	5	0	2.45

Monte Rosa Therapeutics currently has a consensus price target of $13.33, suggesting a potential upside of 311.52%. Beam Therapeutics has a consensus price target of $48.80, suggesting a potential upside of 64.20%. Given Monte Rosa Therapeutics’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Monte Rosa Therapeutics is more favorable than Beam Therapeutics.

Profitability

This table compares Monte Rosa Therapeutics and Beam Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Monte Rosa Therapeutics	N/A	-58.20%	-44.96%
Beam Therapeutics	-384.62%	-40.66%	-23.59%

Risk and Volatility

Monte Rosa Therapeutics has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Beam Therapeutics has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500.

Summary

Monte Rosa Therapeutics beats Beam Therapeutics on 7 of the 13 factors compared between the two stocks.

About Monte Rosa Therapeutics

Monte Rosa Therapeutics, Inc., a clinical-stage biotechnology company, engages in the development of novel small molecule precision medicines that employ the body's natural mechanisms to selectively degrade therapeutically relevant proteins. The company develops an orally bioavailable molecular glue degrader for GSPT1, a a translation termination factor for the treatment of Myc-driven cancers. It also develops CDK2 to treat ovarian, uterine, and breast cancers; NEK7 for the treatment of inflammatory diseases, such as gout and Crohn's disease, neurodegenerative disease, diabetes, and liver disease; VAV1, a target protein for autoimmune diseases; and a therapeutically-relevant protein in hemoglobinopathies. The company was incorporated in 2019 and is headquartered in Boston, Massachusetts.

About Beam Therapeutics

Beam Therapeutics Inc., a biotechnology company, engages in the development of precision genetic medicines for patients suffering from serious diseases in the United States. It develops BEAM-101 and BEAM-102 for the treatment of sickle cell disease beta thalassemia; BEAM-201, an allogeneic chimeric antigen receptor T cell for the treatment of refractory T-cell acute lymphoblastic leukemia/T cell lymphoblastic lymphoma; BEAM-301, a liver-targeting LNP formulation for the treatment of glycogen storage disease 1a; and BEAM-302, a liver-targeting LNP formulation to treat severe alpha-1 antitrypsin deficiency. The company has research collaboration agreement with Pfizer Inc., focus on in vivo base editing programs for targets rare genetic diseases of the liver, muscle, and central nervous system; Apellis Pharmaceuticals to conduct preclinical research on target specific genes within the complement system in various organs, including the eye, liver, and brain; Verve Therapeutics, Inc., for cardiovascular disease treatments; Sana Biotechnology, Inc., to research, develop, and commercialize rights to CRISPR Cas12b for cell therapy programs; Orbital Therapeutics design RNA for the prevention, treatment or diagnosis of human disease; and the Institute of Molecular and Clinical Ophthalmology Basel for treatment of impaired vision and blindness. Beam Therapeutics Inc. was incorporated in 2017 and is based in Cambridge, Massachusetts.