Comparing Dianthus Therapeutics (NASDAQ:DNTH) & Arcus Biosciences (NYSE:RCUS)

Arcus Biosciences (NYSE:RCUS) and Dianthus Therapeutics (NASDAQ:DNTH) are both mid-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Volatility & Risk

Arcus Biosciences has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Dianthus Therapeutics has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Institutional and Insider Ownership

92.9% of Arcus Biosciences shares are owned by institutional investors. Comparatively, 47.5% of Dianthus Therapeutics shares are owned by institutional investors. 7.6% of Arcus Biosciences shares are owned by company insiders. Comparatively, 3.0% of Dianthus Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Arcus Biosciences and Dianthus Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arcus Biosciences	-393.16%	-89.54%	-45.61%
Dianthus Therapeutics	-10,096.95%	-22.53%	-21.55%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Arcus Biosciences and Dianthus Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcus Biosciences	1	3	12	0	2.69
Dianthus Therapeutics	1	0	13	1	2.93

Arcus Biosciences presently has a consensus target price of $38.55, suggesting a potential upside of 74.69%. Dianthus Therapeutics has a consensus target price of $129.83, suggesting a potential upside of 80.10%. Given Dianthus Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Dianthus Therapeutics is more favorable than Arcus Biosciences.

Valuation & Earnings

This table compares Arcus Biosciences and Dianthus Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arcus Biosciences	$117.00 million	24.01	-$353.00 million	($3.90)	-5.66
Dianthus Therapeutics	$1.90 million	2,074.78	-$162.34 million	($4.15)	-17.37

Dianthus Therapeutics has lower revenue, but higher earnings than Arcus Biosciences. Dianthus Therapeutics is trading at a lower price-to-earnings ratio than Arcus Biosciences, indicating that it is currently the more affordable of the two stocks.

Summary

Dianthus Therapeutics beats Arcus Biosciences on 9 of the 15 factors compared between the two stocks.

About Arcus Biosciences

Arcus Biosciences, Inc., a clinical-stage biopharmaceutical company, develops and commercializes cancer therapies in the United States. The company's pipeline products include Domvanalimab, an anti-TIGIT antibody, which is in Phase 2 and Phase 3 clinical trial; and AB308, an investigational anti-TIGIT monoclonal antibody, which is in Phase 1b clinical trial to study people with advanced solid and hematologic malignancies. It also develops Etrumadenant, a dual A2a/A2b adenosine receptor antagonist, which is in Phase 2 clinical trial; Quemliclustat, a small-molecule CD73 inhibitor, which is Phase 1b and Phase 2 clinical trial; Zimberelimab, an anti-PD-1 antibody, which is in Phase 2 clinical trial for metastatic cell lung cancer and monotherapy; and AB521, an oral and small-molecule inhibitor of HIF-2a, which is in Phase 1 clinical trial for the treatment of Von Hippel-Lindau disease. In addition, the company's preclinical pipeline products include AB598, a CD39 antibody; and AB801, a small molecule Axl inhibitor. It has a clinical collaboration with AstraZeneca to evaluate domvanalimab in combination with durvalumab in a registrational phase 3 clinical trial in patients with unresectable Stage 3 NSCLC; and BVF Partners L.P. to support the discovery and development of compounds for the treatment of inflammatory diseases. Arcus Biosciences, Inc. was incorporated in 2015 and is headquartered in Hayward, California.

About Dianthus Therapeutics

Dianthus Therapeutics, Inc., a clinical-stage biotechnology company, develops complement therapeutics for patients with severe autoimmune and inflammatory diseases. It is developing DNTH103, a monoclonal antibody, which is in Phase 2 clinical trial, for the treatment of generalized myasthenia gravis, multifocal motor neuropathy, and chronic inflammatory demyelinating polyneuropathy. Dianthus Therapeutics, Inc. was founded in 2019 and is headquartered in New York, New York.