Arcturus Therapeutics (NASDAQ:ARCT) and Eidos Therapeutics (NASDAQ:EIDX) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.
Insider and Institutional Ownership
74.3% of Arcturus Therapeutics shares are held by institutional investors. Comparatively, 31.4% of Eidos Therapeutics shares are held by institutional investors. 12.6% of Arcturus Therapeutics shares are held by company insiders. Comparatively, 70.1% of Eidos Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Arcturus Therapeutics and Eidos Therapeutics' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Arcturus Therapeutics | $20.79 million | 63.57 | $-25,990,000.00 | ($2.15) | -25.10 |
Eidos Therapeutics | $26.69 million | 177.99 | $-37,830,000.00 | ($1.03) | -118.65 |
Arcturus Therapeutics has higher earnings, but lower revenue than Eidos Therapeutics. Eidos Therapeutics is trading at a lower price-to-earnings ratio than Arcturus Therapeutics, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Arcturus Therapeutics and Eidos Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Arcturus Therapeutics | 2 | 5 | 4 | 0 | 2.18 |
Eidos Therapeutics | 1 | 8 | 1 | 0 | 2.00 |
Arcturus Therapeutics currently has a consensus price target of $70.6154, suggesting a potential upside of 30.87%. Eidos Therapeutics has a consensus price target of $53.4520, suggesting a potential downside of 56.26%. Given Arcturus Therapeutics' stronger consensus rating and higher probable upside, equities research analysts clearly believe Arcturus Therapeutics is more favorable than Eidos Therapeutics.
Profitability
This table compares Arcturus Therapeutics and Eidos Therapeutics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Arcturus Therapeutics | -506.70% | -52.32% | -33.21% |
Eidos Therapeutics | N/A | -65.21% | -53.04% |
Volatility and Risk
Arcturus Therapeutics has a beta of 3.01, indicating that its stock price is 201% more volatile than the S&P 500. Comparatively, Eidos Therapeutics has a beta of -0.16, indicating that its stock price is 116% less volatile than the S&P 500.
Summary
Arcturus Therapeutics beats Eidos Therapeutics on 9 of the 14 factors compared between the two stocks.