Financial Analysis: LENZ Therapeutics (NASDAQ:LENZ) & Vireo Growth (OTCMKTS:VREOD)
by Michael Walen · The Markets DailyVireo Growth (OTCMKTS:VREOD – Get Free Report) and LENZ Therapeutics (NASDAQ:LENZ – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.
Volatility and Risk
Vireo Growth has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500. Comparatively, LENZ Therapeutics has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.
Earnings & Valuation
This table compares Vireo Growth and LENZ Therapeutics”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vireo Growth | $268.77 million | 1.68 | -$68.11 million | ($3.30) | -3.02 |
| LENZ Therapeutics | $12.36 million | 7.92 | -$82.13 million | ($4.49) | -0.69 |
Vireo Growth has higher revenue and earnings than LENZ Therapeutics. Vireo Growth 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 summary of current ratings for Vireo Growth and LENZ Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vireo Growth | 1 | 0 | 0 | 0 | 1.00 |
| LENZ Therapeutics | 1 | 2 | 4 | 0 | 2.43 |
LENZ Therapeutics has a consensus target price of $14.75, indicating a potential upside of 373.52%. Given LENZ Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe LENZ Therapeutics is more favorable than Vireo Growth.
Insider & Institutional Ownership
54.3% of LENZ Therapeutics shares are owned by institutional investors. 3.8% of Vireo Growth shares are owned by insiders. Comparatively, 8.3% of LENZ Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Vireo Growth and LENZ Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vireo Growth | -23.37% | -19.76% | -7.15% |
| LENZ Therapeutics | -1,134.97% | -59.56% | -54.75% |
About Vireo Growth
Goodness Growth Holdings, Inc. operates as a cannabis company in the United States. The company cultivates, processes, and distributes medical and adult-use cannabis products. It sells cannabis products through its network of Green Goods and other Goodness Growth branded retail dispensaries and third-party dispensaries in Maryland, Minnesota, and New York. The company was formerly known as Vireo Health International Inc. and changed its name to Goodness Growth Holdings, Inc. in June 2021. Goodness Growth Holdings, Inc. is headquartered in Minneapolis, Minnesota.
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.