Financial Comparison: Monte Rosa Therapeutics (NASDAQ:GLUE) and Twist Bioscience (NASDAQ:TWST)

Twist Bioscience (NASDAQ:TWST) and Monte Rosa Therapeutics (NASDAQ:GLUE) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.

Analyst Recommendations

This is a summary of recent ratings and price targets for Twist Bioscience and Monte Rosa Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Twist Bioscience	2	0	9	0	2.64
Monte Rosa Therapeutics	1	1	2	0	2.25

Twist Bioscience currently has a consensus price target of $46.33, indicating a potential upside of 46.16%. Monte Rosa Therapeutics has a consensus price target of $16.33, indicating a potential upside of 2.15%. Given Twist Bioscience’s stronger consensus rating and higher probable upside, research analysts clearly believe Twist Bioscience is more favorable than Monte Rosa Therapeutics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Twist Bioscience	-20.63%	-27.40%	-20.33%
Monte Rosa Therapeutics	11.54%	8.28%	5.07%

Risk & Volatility

Twist Bioscience has a beta of 2.43, indicating that its stock price is 143% more volatile than the S&P 500. Comparatively, Monte Rosa Therapeutics has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500.

Earnings & Valuation

This table compares Twist Bioscience and Monte Rosa Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Twist Bioscience	$376.57 million	5.15	-$77.67 million	($1.31)	-24.20
Monte Rosa Therapeutics	$75.62 million	13.77	-$72.70 million	$0.32	49.97

Monte Rosa Therapeutics has lower revenue, but higher earnings than Twist Bioscience. Twist Bioscience 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 & Institutional Ownership

80.0% of Monte Rosa Therapeutics shares are owned by institutional investors. 3.0% of Twist Bioscience shares are owned by company insiders. Comparatively, 6.9% of Monte Rosa Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Monte Rosa Therapeutics beats Twist Bioscience on 9 of the 14 factors compared between the two stocks.

About Twist Bioscience

Twist Bioscience Corporation engages in the manufacture and sale of synthetic DNA-based products. The company offers synthetic genes and gene fragments used in product development for therapeutics, diagnostics, chemicals/materials, food/agriculture, data storage, and various applications within academic research by biotech, pharma, industrial chemical, and agricultural companies, as well as academic labs; Oligo pools used in targeted NGS, CRISPR gene editing, mutagenesis experiments, DNA origami, DNA computing, data storage in DNA, and other applications; and immunoglobulin G proteins for customers focused on the pursuit of drug discovery and development. It also provides NGS tools comprising library preparation kits, human exome kits, and fixed and custom panels, as well as alliance panels, primarily used within diagnostic tests for various indications, population genetics research and biomarker discovery, translational research, microbiology, and applied markets research; and methylation detection kits for cancer, and rare and inherited disease study, as well as fast hybridization and full RNA sequencing workflow solution. In addition, the company provides synthetic SARS-CoV-2 RNA reference sequences as positive controls for the development of both NGS and reverse transcription-polymerase chain reaction assays; synthetic monkeypox controls; and various respiratory viral controls, including for influenzas, respiratory syncytial virus, rhinoviruses, SARS, MERS, and coronaviruses. Further, it offers SARS-CoV-2 Research Panels, such as the Twist Respiratory Virus Panel and the Pan-Viral Research Panel, for the detection of disease in a research setting; precision DNA libraries used for antibody engineering, affinity maturation, and humanization; and antibody optimization solution to enable simultaneous optimization of multiple characteristics of a given antibody. The company was incorporated in 2013 and is headquartered in South San Francisco, California.

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 MRT-2359, an orally bioavailable molecular glue degrader targeting the translation termination factor protein GSPT1 for the treatment of MYC-driven tumors; MRT-6160 for the treatment of systemic and central nervous system autoimmune diseases; and MRT-8102 for the treatment of IL-1?/NLRP3 driven inflammatory diseases. It also develops CDK2 to treat ovarian, uterine, and breast cancers. The company was incorporated in 2019 and is headquartered in Boston, Massachusetts.