TCR2 Therapeutics (NASDAQ:TCRR) and ADMA Biologics (NASDAQ:ADMA) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.
Earnings and Valuation
This table compares TCR2 Therapeutics and ADMA Biologics' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| TCR2 Therapeutics | N/A | N/A | $-47,600,000.00 | ($4.62) | -4.77 |
| ADMA Biologics | $29.35 million | 7.27 | $-48,280,000.00 | ($0.92) | -1.91 |
TCR2 Therapeutics has higher earnings, but lower revenue than ADMA Biologics. TCR2 Therapeutics is trading at a lower price-to-earnings ratio than ADMA Biologics, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for TCR2 Therapeutics and ADMA Biologics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| TCR2 Therapeutics | 0 | 0 | 8 | 0 | 3.00 |
| ADMA Biologics | 0 | 0 | 5 | 0 | 3.00 |
TCR2 Therapeutics currently has a consensus target price of $43.2857, suggesting a potential upside of 96.57%. ADMA Biologics has a consensus target price of $7.80, suggesting a potential upside of 343.18%. Given ADMA Biologics' higher possible upside, analysts plainly believe ADMA Biologics is more favorable than TCR2 Therapeutics.
Volatility and Risk
TCR2 Therapeutics has a beta of 2.13, meaning that its share price is 113% more volatile than the S&P 500. Comparatively, ADMA Biologics has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500.
Insider and Institutional Ownership
82.1% of TCR2 Therapeutics shares are owned by institutional investors. Comparatively, 48.9% of ADMA Biologics shares are owned by institutional investors. 28.0% of TCR2 Therapeutics shares are owned by company insiders. Comparatively, 11.7% of ADMA Biologics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares TCR2 Therapeutics and ADMA Biologics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| TCR2 Therapeutics | N/A | -35.51% | -34.02% |
| ADMA Biologics | -166.01% | -98.83% | -37.21% |
Summary
TCR2 Therapeutics beats ADMA Biologics on 8 of the 12 factors compared between the two stocks.
