Arbutus Biopharma (NASDAQ:ABUS – Get Free Report) and Pliant Therapeutics (NASDAQ:PLRX – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Analyst Ratings
This is a summary of current ratings and recommmendations for Arbutus Biopharma and Pliant Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arbutus Biopharma | 0 | 1 | 1 | 0 | 2.50 |
| Pliant Therapeutics | 1 | 1 | 1 | 0 | 2.00 |
Arbutus Biopharma currently has a consensus price target of $5.00, indicating a potential upside of 28.87%. Pliant Therapeutics has a consensus price target of $3.00, indicating a potential upside of 285.80%. Given Pliant Therapeutics’ higher possible upside, analysts plainly believe Pliant Therapeutics is more favorable than Arbutus Biopharma.
Valuation & Earnings
This table compares Arbutus Biopharma and Pliant Therapeutics”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arbutus Biopharma | $14.08 million | 54.59 | -$33.50 million | $0.79 | 4.91 |
| Pliant Therapeutics | N/A | N/A | -$149.34 million | ($1.49) | -0.52 |
Arbutus Biopharma has higher revenue and earnings than Pliant Therapeutics. Pliant Therapeutics is trading at a lower price-to-earnings ratio than Arbutus Biopharma, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Arbutus Biopharma and Pliant Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Arbutus Biopharma | 121.17% | 110.79% | 102.16% |
| Pliant Therapeutics | N/A | -52.17% | -40.46% |
Risk & Volatility
Arbutus Biopharma has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Pliant Therapeutics has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.
Institutional & Insider Ownership
43.8% of Arbutus Biopharma shares are held by institutional investors. Comparatively, 97.3% of Pliant Therapeutics shares are held by institutional investors. 19.9% of Arbutus Biopharma shares are held by insiders. Comparatively, 8.7% of Pliant Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Arbutus Biopharma beats Pliant Therapeutics on 9 of the 12 factors compared between the two stocks.
About Arbutus Biopharma
Arbutus Biopharma is a clinical-stage biopharmaceutical company focused on developing treatments for chronic hepatitis B virus (HBV) infection. Its research programs include RNA interference (RNAi) therapies, immune-based treatments and capsid assembly inhibitors, which target different aspects of the virus and the body’s response to infection. The company’s investigational portfolio includes imdusiran, an RNAi therapeutic designed to reduce hepatitis B surface antigen, as well as other HBV drug candidates at various stages of development.
About Pliant Therapeutics
Pliant Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on discovering and developing therapies for fibrotic diseases. The company’s research is centered on integrin biology, a field involving proteins that regulate cell communication and tissue remodeling. Pliant aims to develop medicines that address the underlying processes that drive fibrosis in organs such as the lungs and liver. Pliant’s lead investigational product is bexotegrast, an oral, selective inhibitor of the integrins αvβ1 and αvβ6.
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