Critical Analysis: Janux Therapeutics (NASDAQ:JANX) and Werewolf Therapeutics (NASDAQ:HOWL)

Janux Therapeutics (NASDAQ:JANX) and Werewolf Therapeutics (NASDAQ:HOWL) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Janux Therapeutics and Werewolf Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Janux Therapeutics	0	1	12	2	3.07
Werewolf Therapeutics	0	0	5	0	3.00

Janux Therapeutics presently has a consensus target price of $80.92, indicating a potential upside of 236.45%. Werewolf Therapeutics has a consensus target price of $8.00, indicating a potential upside of 459.44%. Given Werewolf Therapeutics’ higher possible upside, analysts plainly believe Werewolf Therapeutics is more favorable than Janux Therapeutics.

Risk and Volatility

Janux Therapeutics has a beta of 2.84, suggesting that its share price is 184% more volatile than the S&P 500. Comparatively, Werewolf Therapeutics has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.

Earnings and Valuation

This table compares Janux Therapeutics and Werewolf Therapeutics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Janux Therapeutics	$10.59 million	136.47	-$68.99 million	($1.80)	-13.36
Werewolf Therapeutics	$1.88 million	34.78	-$70.51 million	($1.64)	-0.87

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

Profitability

This table compares Janux Therapeutics and Werewolf Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Janux Therapeutics	N/A	-11.48%	-11.01%
Werewolf Therapeutics	N/A	-111.87%	-62.68%

Institutional and Insider Ownership

75.4% of Janux Therapeutics shares are held by institutional investors. Comparatively, 64.8% of Werewolf Therapeutics shares are held by institutional investors. 29.4% of Janux Therapeutics shares are held by insiders. Comparatively, 23.6% of Werewolf Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Janux Therapeutics beats Werewolf Therapeutics on 11 of the 14 factors compared between the two stocks.

About Janux Therapeutics

Janux Therapeutics, Inc., a clinical stage biopharmaceutical company, develops immunotherapies based on Tumor Activated T Cell Engagers (TRACTr) and Tumor Activated Immunomodulators (TRACIr) platforms technology to treat patients suffering from cancer. The company's clinical candidates comprise JANX007, a prostate-specific membrane antigen or PSMA-TRACTr, which is in Phase 1 clinical trial in adults for the treatment of metastatic castration-resistant prostate cancer (mCRPC) and the vasculature of other tumors; and JANX008, an epidermal growth factor receptor or EGFR-TRACTr that is in Phase 1 clinical trial for the treatment of multiple solid cancers, including colorectal cancer, squamous cell carcinoma of the head and neck, non-small cell lung cancer, and renal cell carcinoma. Its development pipeline also consists of discovery stage products. The company has strategic research collaboration agreement with Merck Sharp & Dohme Corp. to develop TRACTr product candidates. Janux Therapeutics, Inc. was incorporated in 2017 and is headquartered in San Diego, California.

About Werewolf Therapeutics

Werewolf Therapeutics, Inc., a biopharmaceutical company, develops therapeutics engineered to stimulate the body's immune system for the treatment of cancer. The company, through its proprietary PREDATOR platform, designs conditionally activated molecules that stimulate adaptive and innate immunity for addressing the limitations of conventional proinflammatory immune therapies. Its lead product candidates are WTX-124, a conditionally activated Interleukin-2 INDUKINE molecule that is in Phase I/Ib clinical trial for the treatment of advanced or metastatic solid tumors; and WTX-330, a conditionally activated Interleukin-12 INDUKINE molecule, which is in Phase I clinical trial for the treatment of advanced or metastatic solid tumors and lymphoma. The company is also developing JZP898, a conditionally activated interferon alpha INDUKINE molecule for the treatment of cancer; and WTX-712, an activated Interleukin-21(IL-21) and WTX-518, an activated IL-18 (IL-18) INDUKINE molecule for the treatment of cancer. Werewolf Therapeutics, Inc. was incorporated in 2017 and is headquartered in Watertown, Massachusetts.