Arcturus Therapeutics (NASDAQ: ARCT) and Arrowhead Pharmaceuticals (NASDAQ:ARWR) are both small-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.
Volatility and Risk
Arcturus Therapeutics has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Arrowhead Pharmaceuticals has a beta of 2.52, meaning that its share price is 152% more volatile than the S&P 500.
Earnings and Valuation
This table compares Arcturus Therapeutics and Arrowhead Pharmaceuticals’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Arcturus Therapeutics||N/A||N/A||-$24.60 million||($5.32)||-1.07|
|Arrowhead Pharmaceuticals||$31.41 million||16.03||-$34.38 million||($0.47)||-12.34|
Arcturus Therapeutics has higher earnings, but lower revenue than Arrowhead Pharmaceuticals. Arrowhead Pharmaceuticals is trading at a lower price-to-earnings ratio than Arcturus Therapeutics, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings for Arcturus Therapeutics and Arrowhead Pharmaceuticals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Arcturus Therapeutics presently has a consensus price target of $3.45, suggesting a potential downside of 39.26%. Arrowhead Pharmaceuticals has a consensus price target of $4.70, suggesting a potential downside of 18.97%. Given Arrowhead Pharmaceuticals’ higher probable upside, analysts plainly believe Arrowhead Pharmaceuticals is more favorable than Arcturus Therapeutics.
Insider & Institutional Ownership
25.5% of Arrowhead Pharmaceuticals shares are held by institutional investors. 0.0% of Arcturus Therapeutics shares are held by company insiders. Comparatively, 4.6% of Arrowhead Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Arcturus Therapeutics and Arrowhead Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Arrowhead Pharmaceuticals beats Arcturus Therapeutics on 7 of the 11 factors compared between the two stocks.
About Arcturus Therapeutics
Arcturus Therapeutics Ltd, formerly Alcobra Ltd, is an Israel-based preclinical-stage biopharmaceutical company primarily focused on the discovery, development and commercialization of ribonucleic acid (RNA) medicines using lipid-mediated nanoparticle delivery system (LUNAR) and Unlocked Nucleomonomer Agent (UNA) Oligomer chemistry technology platforms. The Company, through Arcturus Therapeutics Inc, its wholly owned subsidiary based in the United States, is focused on developing RNA medicines for rare, infectious, fibrotic and respiratory diseases with unmet medical needs, including cystic fibrosis, nonalcoholic steatohepatitis (NASH) and rare liver diseases, as well as replicon RNA vaccines.
About Arrowhead Pharmaceuticals
Arrowhead Pharmaceuticals, Inc., formerly Arrowhead Research Corporation, develops medicines that treat intractable diseases by silencing the genes that cause them. Using a portfolio of ribonucleic acid (RNA) chemistries and modes of delivery, the Company’s therapies trigger the RNA interference mechanism to induce knockdown of target genes. The Company is focused on developing drugs for diseases with a genetic basis, characterized by the overproduction of one or more proteins. The Company’s preclinical pipeline of RNA interference (RNAi) therapeutics includes both subcutaneously administered liver-targeted candidates and extra-hepatic candidates. The Company’s pre-clinical-stage drug candidates include ARO-HBV, ARO-AAT, ARO-LPA, ARO-AMG1, ARO-F12 and ARO-HIF2. ARO-HBV is an RNAi therapeutic candidate for the treatment of chronic hepatitis B infection. ARO-AAT is a therapeutic candidate for the treatment of liver disease associated with Alpha-1 Antitrypsin Deficiency.
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