Mereo BioPharma Group (MREO) Competitors

Mereo BioPharma Group (NASDAQ:MREO) and Arcutis Biotherapeutics (NASDAQ:ARQT) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, community ranking, risk, analyst recommendations, media sentiment, dividends, profitability, valuation and earnings.

Do institutionals & insiders have more ownership in MREO or ARQT?

62.8% of Mereo BioPharma Group shares are owned by institutional investors. 5.5% of Mereo BioPharma Group shares are owned by company insiders. Comparatively, 9.4% of Arcutis Biotherapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Do analysts prefer MREO or ARQT?

Mereo BioPharma Group presently has a consensus target price of $7.71, suggesting a potential upside of 177.49%. Arcutis Biotherapeutics has a consensus target price of $18.80, suggesting a potential upside of 39.26%. Given Mereo BioPharma Group's stronger consensus rating and higher probable upside, research analysts clearly believe Mereo BioPharma Group is more favorable than Arcutis Biotherapeutics.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mereo BioPharma Group	0 Sell rating(s)	0 Hold rating(s)	6 Buy rating(s)	2 Strong Buy rating(s)	3.25
Arcutis Biotherapeutics	0 Sell rating(s)	1 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.83

Which has more risk and volatility, MREO or ARQT?

Mereo BioPharma Group has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, Arcutis Biotherapeutics has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500.

Does the media refer more to MREO or ARQT?

In the previous week, Arcutis Biotherapeutics had 4 more articles in the media than Mereo BioPharma Group. MarketBeat recorded 11 mentions for Arcutis Biotherapeutics and 7 mentions for Mereo BioPharma Group. Mereo BioPharma Group's average media sentiment score of 1.02 beat Arcutis Biotherapeutics' score of 0.93 indicating that Mereo BioPharma Group is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Mereo BioPharma Group	2 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Arcutis Biotherapeutics	3 Very Positive mention(s)	0 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has higher earnings and valuation, MREO or ARQT?

Mereo BioPharma Group has higher earnings, but lower revenue than Arcutis Biotherapeutics. Mereo BioPharma Group is trading at a lower price-to-earnings ratio than Arcutis Biotherapeutics, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mereo BioPharma Group	$1M	442.02	-$29.47M	-$0.07	-39.71
Arcutis Biotherapeutics	$212.82M	7.56	-$262.14M	-$1.04	-12.98

Is MREO or ARQT more profitable?

Mereo BioPharma Group has a net margin of 0.00% compared to Arcutis Biotherapeutics' net margin of -140.97%. Mereo BioPharma Group's return on equity of 0.00% beat Arcutis Biotherapeutics' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Mereo BioPharma Group	N/A	N/A	N/A
Arcutis Biotherapeutics	-140.97%	-119.11%	-45.95%

Does the MarketBeat Community prefer MREO or ARQT?

Arcutis Biotherapeutics received 19 more outperform votes than Mereo BioPharma Group when rated by MarketBeat users. However, 80.60% of users gave Mereo BioPharma Group an outperform vote while only 68.22% of users gave Arcutis Biotherapeutics an outperform vote.

Company	Underperform	Outperform
Mereo BioPharma Group	Outperform Votes 54 80.60%	Underperform Votes 13 19.40%
Arcutis Biotherapeutics	Outperform Votes 73 68.22%	Underperform Votes 34 31.78%

Summary

Mereo BioPharma Group beats Arcutis Biotherapeutics on 13 of the 19 factors compared between the two stocks.