LENZ Therapeutics (NASDAQ:LENZ – Get Free Report) and ARS Pharmaceuticals (NASDAQ:SPRY – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for LENZ Therapeutics and ARS Pharmaceuticals, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LENZ Therapeutics | 1 | 2 | 4 | 0 | 2.43 |
| ARS Pharmaceuticals | 1 | 1 | 4 | 0 | 2.50 |
LENZ Therapeutics currently has a consensus target price of $17.50, indicating a potential upside of 473.77%. ARS Pharmaceuticals has a consensus target price of $25.00, indicating a potential upside of 639.64%. Given ARS Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe ARS Pharmaceuticals is more favorable than LENZ Therapeutics.
Institutional & Insider Ownership
54.3% of LENZ Therapeutics shares are owned by institutional investors. Comparatively, 68.2% of ARS Pharmaceuticals shares are owned by institutional investors. 8.3% of LENZ Therapeutics shares are owned by company insiders. Comparatively, 33.8% of ARS Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility and Risk
LENZ Therapeutics has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, ARS Pharmaceuticals has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.
Profitability
This table compares LENZ Therapeutics and ARS Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LENZ Therapeutics | -1,134.97% | -56.10% | -51.63% |
| ARS Pharmaceuticals | -184.24% | -256.67% | -69.63% |
Valuation and Earnings
This table compares LENZ Therapeutics and ARS Pharmaceuticals”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LENZ Therapeutics | $19.09 million | 5.02 | -$82.13 million | ($4.49) | -0.68 |
| ARS Pharmaceuticals | $84.28 million | 3.99 | -$171.30 million | ($2.18) | -1.55 |
LENZ Therapeutics has higher earnings, but lower revenue than ARS Pharmaceuticals. ARS Pharmaceuticals is trading at a lower price-to-earnings ratio than LENZ Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
ARS Pharmaceuticals beats LENZ Therapeutics on 8 of the 13 factors compared between the two stocks.
About LENZ Therapeutics
LENZ Therapeutics, Inc., a biopharmaceutical company, focuses on developing and commercializing therapies to improve vision in the United States. Its product candidates include LNZ100 and LNZ101 which are in Phase III clinical trials for the treatment of presbyopia. The company is headquartered in Del Mar, California.
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.
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