Head to Head Review: Q32 Bio (NASDAQ:QTTB) vs. Applied Therapeutics (NASDAQ:APLT)

Q32 Bio (NASDAQ:QTTB) and Applied Therapeutics (NASDAQ:APLT) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Insider and Institutional Ownership

31.3% of Q32 Bio shares are owned by institutional investors. Comparatively, 98.3% of Applied Therapeutics shares are owned by institutional investors. 34.5% of Q32 Bio shares are owned by insiders. Comparatively, 1.6% of Applied Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Q32 Bio and Applied Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Q32 Bio	$53.74 million	4.44	$29.82 million	$3.00	2.67
Applied Therapeutics	$1.00 million	15.86	-$105.62 million	($0.10)	-1.03

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

Profitability

This table compares Q32 Bio and Applied Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Q32 Bio	N/A	50.17%	29.49%
Applied Therapeutics	N/A	-340.84%	-175.00%

Analyst Ratings

This is a breakdown of current recommendations for Q32 Bio and Applied Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Q32 Bio	0	2	6	1	2.89
Applied Therapeutics	1	2	0	0	1.67

Q32 Bio currently has a consensus target price of $32.17, indicating a potential upside of 301.58%. Applied Therapeutics has a consensus target price of $1.00, indicating a potential upside of 870.87%. Given Applied Therapeutics’ higher probable upside, analysts clearly believe Applied Therapeutics is more favorable than Q32 Bio.

Risk and Volatility

Q32 Bio has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500. Comparatively, Applied Therapeutics has a beta of 2.08, indicating that its share price is 108% more volatile than the S&P 500.

Summary

Q32 Bio beats Applied Therapeutics on 10 of the 14 factors compared between the two stocks.

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.

About Applied Therapeutics

Applied Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in the development of a pipeline of novel product candidates against validated molecular targets in indications of high unmet medical need in the United States. The company's lead product candidate is AT-007 (also called govorestat) that has completed phase 3 for the treatment of galactosemia in healthy volunteers and adults, in pediatric clinical study for the treatment of galactosemia in kids, for treating enzyme sorbitol dehydrogenase, and for the treatment of phosphomannomutase enzyme-CDG. It also develops AT-001 (also called caficrestat) that is in phase 3 clinical trials to treat diabetic cardiomyopathy, as well as for the treatment of diabetic peripheral neuropathy; and AT-003, which is in preclinical studies for the treatment diabetic retinopathy. The company has exclusive license and supply agreement with Mercury Pharma Group Limited to commercialize drug products containing AT-007. Applied Therapeutics, Inc. was incorporated in 2016 and is headquartered in New York, New York.