Fate Therapeutics (NASDAQ:FATE – Get Rating) and TCR2 Therapeutics (NASDAQ:TCRR – Get Rating) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.
Profitability
This table compares Fate Therapeutics and TCR2 Therapeutics' net margins, return on equity and return on assets.
Get Fate Therapeutics alerts:| Net Margins | Return on Equity | Return on Assets | |
| Fate Therapeutics | -292.55% | -50.86% | -36.11% |
| TCR2 Therapeutics | N/A | -73.97% | -54.59% |
Risk & Volatility
Fate Therapeutics has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, TCR2 Therapeutics has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Fate Therapeutics and TCR2 Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fate Therapeutics | 2 | 15 | 5 | 0 | 2.14 |
| TCR2 Therapeutics | 0 | 6 | 2 | 0 | 2.25 |
Fate Therapeutics presently has a consensus price target of $19.44, suggesting a potential upside of 233.98%. TCR2 Therapeutics has a consensus price target of $4.91, suggesting a potential upside of 171.51%. Given Fate Therapeutics' higher possible upside, equities research analysts plainly believe Fate Therapeutics is more favorable than TCR2 Therapeutics.
Earnings and Valuation
This table compares Fate Therapeutics and TCR2 Therapeutics' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fate Therapeutics | $96.30 million | 5.94 | -$281.72 million | ($2.91) | -2.00 |
| TCR2 Therapeutics | N/A | N/A | -$151.82 million | ($3.93) | -0.46 |
TCR2 Therapeutics has lower revenue, but higher earnings than Fate Therapeutics. Fate Therapeutics is trading at a lower price-to-earnings ratio than TCR2 Therapeutics, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
64.8% of TCR2 Therapeutics shares are held by institutional investors. 17.3% of Fate Therapeutics shares are held by insiders. Comparatively, 25.0% of TCR2 Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
TCR2 Therapeutics beats Fate Therapeutics on 7 of the 13 factors compared between the two stocks.
About Fate Therapeutics
(Get Rating)
Fate Therapeutics, Inc. engages in the development of programmed cellular immunotherapies for cancer and immune disorder. Its pipeline of products includes immuno-ocology candidates and immuno-regulation candidates. The company was founded by Philip Beachy, Sheng Ding, Rudolf Jaenisch, Randall T. Moon, Michael Rudnicki, David Scadden, Leonard Zon, Alexander Rives, Scott Wolchko, and John D. Mendlein on April 27, 2007 and is headquartered in San Diego, CA.
About TCR2 Therapeutics
(Get Rating)
TCR2 Therapeutics, Inc. is a clinical-stage cell therapy company, which engages in the development of biological drugs and engineering T-cells for cancer therapy. It is also involved in the research and collaboration with academic laboratories and industry partners in the field of T-cell immunology, cell therapy, gene editing, and process development. The company was founded by Patrick A. Baeuerle on May 29, 2015 and is headquartered in Cambridge, MA.
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