Atea Pharmaceuticals (NASDAQ:AVIR – Get Free Report) and NewAmsterdam Pharma (NASDAQ:NAMS – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Profitability
This table compares Atea Pharmaceuticals and NewAmsterdam Pharma’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Atea Pharmaceuticals | N/A | -16.93% | -16.28% |
| NewAmsterdam Pharma | N/A | -67.45% | -33.66% |
Valuation and Earnings
This table compares Atea Pharmaceuticals and NewAmsterdam Pharma’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Atea Pharmaceuticals | $351.37 million | 0.82 | -$115.91 million | ($1.32) | -2.63 |
| NewAmsterdam Pharma | $102.74 million | 8.48 | -$82.23 million | N/A | N/A |
Analyst Recommendations
This is a summary of recent ratings and price targets for Atea Pharmaceuticals and NewAmsterdam Pharma, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Atea Pharmaceuticals | 1 | 2 | 0 | 0 | 1.67 |
| NewAmsterdam Pharma | 0 | 0 | 4 | 0 | 3.00 |
Atea Pharmaceuticals presently has a consensus target price of $6.00, indicating a potential upside of 72.91%. NewAmsterdam Pharma has a consensus target price of $21.67, indicating a potential upside of 102.87%. Given NewAmsterdam Pharma’s stronger consensus rating and higher possible upside, analysts clearly believe NewAmsterdam Pharma is more favorable than Atea Pharmaceuticals.
Risk & Volatility
Atea Pharmaceuticals has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500. Comparatively, NewAmsterdam Pharma has a beta of -0.39, meaning that its share price is 139% less volatile than the S&P 500.
Institutional & Insider Ownership
71.3% of Atea Pharmaceuticals shares are held by institutional investors. 14.5% of Atea Pharmaceuticals shares are held by company insiders. Comparatively, 2.5% of NewAmsterdam Pharma shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Atea Pharmaceuticals beats NewAmsterdam Pharma on 6 of the 11 factors compared between the two stocks.
About Atea Pharmaceuticals
Atea Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focused on discovering, developing, and commercializing antiviral therapeutics for patients suffering from viral infections. Its lead product candidate is AT-527, an oral antiviral candidate that is in Phase III SUNRISE-3 clinical trial for the treatment of patients with COVID-19. The company also develops AT-752, a drug that is in Phase II clinical trial for the treatment and prophylaxis of dengue; and AT-281, a pharmaceutically acceptable salt for the treatment or prevention of an RNA viral infection, including dengue fever, yellow fever, and Zika virus, as well as Ruzasvir, an investigational NS5A inhibitor for the treatment of chronic HCV infection. It also develops a co-formulated, oral, pan-genotypic fixed dose combination of bemnifosbuvir and ruzasvir for the treatment of hepatitis C virous (HCV); It has a license agreement with Merck & Co, Inc. development, manufacture, and commercialization of ruzasvir for the treatment of HCV. Atea Pharmaceuticals, Inc. was incorporated in 2012 and is headquartered in Boston, Massachusetts.
About NewAmsterdam Pharma
NewAmsterdam Pharma Company N.V., a clinical-stage biopharmaceutical company, develops oral and non-statin medicines for patients at high risk of cardiovascular disease. Its lead product candidate is obicetrapib, a next generation, oral, and low-dose cholesteryl ester transfer protein (CETP) inhibitor, that is in four ongoing Phase 3 and Phase 2b clinical trials as both a monotherapy and a combination therapy with ezetimibe for lowering LDL-C and preventing major adverse cardiovascular events (MACE). NewAmsterdam Pharma Company N.V. is headquartered in Naarden, the Netherlands.
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