Lexeo Therapeutics (NASDAQ:LXEO) and Monte Rosa Therapeutics (NASDAQ:GLUE) Critical Comparison

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

Risk and Volatility

Lexeo Therapeutics has a beta of 3.85, meaning that its stock price is 285% more volatile than the S&P 500. Comparatively, Monte Rosa Therapeutics has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.

Valuation & Earnings

This table compares Lexeo Therapeutics and Monte Rosa Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lexeo Therapeutics	$650,000.00	154.65	-$66.39 million	($3.16)	-0.96
Monte Rosa Therapeutics	$14.98 million	27.49	-$135.35 million	($1.83)	-3.66

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lexeo Therapeutics	N/A	-57.66%	-48.18%
Monte Rosa Therapeutics	N/A	-62.68%	-38.83%

Institutional & Insider Ownership

60.7% of Lexeo Therapeutics shares are owned by institutional investors. Comparatively, 80.0% of Monte Rosa Therapeutics shares are owned by institutional investors. 4.5% of Lexeo Therapeutics shares are owned by company insiders. Comparatively, 6.5% 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.

Analyst Recommendations

This is a summary of current ratings and price targets for Lexeo Therapeutics and Monte Rosa Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lexeo Therapeutics	0	0	5	1	3.17
Monte Rosa Therapeutics	0	1	3	0	2.75

Lexeo Therapeutics currently has a consensus price target of $23.80, indicating a potential upside of 682.89%. Monte Rosa Therapeutics has a consensus price target of $15.25, indicating a potential upside of 127.61%. Given Lexeo Therapeutics’ stronger consensus rating and higher probable upside, research analysts plainly believe Lexeo Therapeutics is more favorable than Monte Rosa Therapeutics.

Summary

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

About Lexeo Therapeutics

Lexeo Therapeutics, Inc. operates as a clinical stage genetic medicine company that focuses on hereditary and acquired diseases. The company develops LX2006, which is an AAVrh10-based gene therapy candidate for the treatment of Friedreich's ataxia (FA) cardiomyopathy; LX2020, an AAVrh10-based gene therapy candidate for the treatment of plakophilin-2 arrhythmogenic cardiomyopathy; LX2021, a gene therapy candidate for the treatment of DSP cardiomyopathy associated with it; and LX2022, a gene therapy candidate for the treatment of hypertrophic cardiomyopathy, or HCM caused by TNNI3 gene. It also develops LX1001, an AAVrh10-based gene therapy candidate for the treatment of APOE4 homozygous; LX1020, a gene therapy candidate for the treatment of APOE4 homozygous; LX1021 for the treatment of APOE4 homozygotes; and LX1004 for the treatment of CLN2 Batten disease. The company was incorporated in 2017 and is based in New York, New York.

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.