Head-To-Head Comparison: Q32 Bio (NASDAQ:QTTB) versus ARS Pharmaceuticals (NASDAQ:SPRY)

ARS Pharmaceuticals (NASDAQ:SPRY) and Q32 Bio (NASDAQ:QTTB) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Risk & Volatility

ARS Pharmaceuticals has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Q32 Bio has a beta of -0.46, suggesting that its stock price is 146% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for ARS Pharmaceuticals and Q32 Bio, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARS Pharmaceuticals	0	0	4	2	3.33
Q32 Bio	0	4	4	0	2.50

ARS Pharmaceuticals presently has a consensus target price of $24.00, suggesting a potential upside of 122.43%. Q32 Bio has a consensus target price of $29.86, suggesting a potential upside of 788.61%. Given Q32 Bio’s higher probable upside, analysts clearly believe Q32 Bio is more favorable than ARS Pharmaceuticals.

Profitability

This table compares ARS Pharmaceuticals and Q32 Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ARS Pharmaceuticals	N/A	-22.56%	-21.82%
Q32 Bio	N/A	-146.18%	-54.49%

Insider and Institutional Ownership

68.2% of ARS Pharmaceuticals shares are owned by institutional investors. Comparatively, 31.3% of Q32 Bio shares are owned by institutional investors. 40.1% of ARS Pharmaceuticals shares are owned by company insiders. Comparatively, 16.1% of Q32 Bio shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares ARS Pharmaceuticals and Q32 Bio”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARS Pharmaceuticals	$2.57 million	408.34	-$54.37 million	($0.51)	-21.16
Q32 Bio	-$6.65 million	-6.15	-$112.96 million	($14.25)	-0.24

ARS Pharmaceuticals has higher revenue and earnings than Q32 Bio. ARS Pharmaceuticals is trading at a lower price-to-earnings ratio than Q32 Bio, indicating that it is currently the more affordable of the two stocks.

Summary

ARS Pharmaceuticals beats Q32 Bio on 11 of the 13 factors compared between the two stocks.

About ARS Pharmaceuticals

ARS Pharmaceuticals, Inc., a biopharmaceutical company, develops treatments for severe allergic reactions. The company is developing neffy, a needle-free and low-dose intranasal epinephrine nasal spray for the emergency treatment of Type I allergic reactions, including anaphylaxis. It serves healthcare professionals, patients, and caregivers. ARS Pharmaceuticals, Inc. was founded in 2015 and is headquartered in San Diego, California.

About Q32 Bio

Q32 Bio Inc., a clinical-stage biotechnology company, develops biologic therapeutics to restore healthy immune balance in patients with autoimmune and inflammatory diseases driven by pathological immune dysfunction in the United States. Its lead product candidate is ADX-097, a humanized anti-C3d monoclonal antibody fusion protein to restore complement regulation, which has completed Phase I clinical trial for the treatment of renal and other complement-mediated diseases of high unmet need, including lupus nephritis, immunoglobulin A nephropathy, complement component 3 glomerulopathy, and anti-neutrophil cytoplasmic antibody-associated vasculitis. The company is also developing Bempikibart (ADX-914), a fully human antiinterleukin-7 receptor alpha antagonist monoclonal antibody designed to re-regulate adaptive immune function by blocking signaling mediated by interleukin-7 and thymic stromal lymphopoietin that is Phase II clinical trial for the treatment of atopic dermatitis and alopecia areata. Q32 Bio Inc. was formerly known as AdMIRx Inc. and changed its name to Q32 Bio Inc. in April 2020. The company was founded in 2017 and is based in Waltham, Massachusetts.