ARS Pharmaceuticals (NASDAQ:SPRY – Get Free Report) and LENZ Therapeutics (NASDAQ:LENZ – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.
Profitability
This table compares ARS Pharmaceuticals and LENZ Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ARS Pharmaceuticals | -184.24% | -256.67% | -69.63% |
| LENZ Therapeutics | -586.74% | -53.39% | -49.14% |
Institutional & Insider Ownership
68.2% of ARS Pharmaceuticals shares are held by institutional investors. Comparatively, 54.3% of LENZ Therapeutics shares are held by institutional investors. 33.8% of ARS Pharmaceuticals shares are held by insiders. Comparatively, 8.3% of LENZ Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares ARS Pharmaceuticals and LENZ Therapeutics”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ARS Pharmaceuticals | $84.28 million | 4.76 | -$171.30 million | ($2.18) | -1.85 |
| LENZ Therapeutics | $19.09 million | 5.20 | -$82.13 million | ($4.09) | -0.77 |
LENZ Therapeutics has lower revenue, but higher earnings 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.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for ARS Pharmaceuticals and LENZ Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ARS Pharmaceuticals | 1 | 1 | 4 | 0 | 2.50 |
| LENZ Therapeutics | 1 | 2 | 4 | 0 | 2.43 |
ARS Pharmaceuticals presently has a consensus price target of $25.00, suggesting a potential upside of 520.35%. LENZ Therapeutics has a consensus price target of $23.00, suggesting a potential upside of 627.85%. Given LENZ Therapeutics’ higher probable upside, analysts clearly believe LENZ Therapeutics is more favorable than ARS Pharmaceuticals.
Risk and Volatility
ARS Pharmaceuticals has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, LENZ Therapeutics has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.
Summary
ARS Pharmaceuticals beats LENZ Therapeutics on 7 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 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.
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