Arcus Biosciences (NYSE:RCUS) and BridgeBio Pharma (NASDAQ:BBIO) are both mid-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Arcus Biosciences and BridgeBio Pharma, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Arcus Biosciences | 0 | 0 | 9 | 0 | 3.00 |
| BridgeBio Pharma | 0 | 1 | 9 | 0 | 2.90 |
Arcus Biosciences presently has a consensus price target of $49.9091, suggesting a potential upside of 63.69%. BridgeBio Pharma has a consensus price target of $72.8889, suggesting a potential upside of 35.08%. Given Arcus Biosciences' stronger consensus rating and higher possible upside, analysts clearly believe Arcus Biosciences is more favorable than BridgeBio Pharma.
Profitability
This table compares Arcus Biosciences and BridgeBio Pharma's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Arcus Biosciences | -112.63% | -27.43% | -20.96% |
| BridgeBio Pharma | N/A | -109.88% | -48.54% |
Valuation & Earnings
This table compares Arcus Biosciences and BridgeBio Pharma'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 | $15 million | 144.07 | $-84,710,000.00 | ($1.93) | -15.80 |
| BridgeBio Pharma | $40.56 million | 198.17 | $-260,590,000.00 | ($2.48) | -21.76 |
Arcus Biosciences has higher earnings, but lower revenue than BridgeBio Pharma. BridgeBio Pharma is trading at a lower price-to-earnings ratio than Arcus Biosciences, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
60.6% of Arcus Biosciences shares are owned by institutional investors. Comparatively, 95.5% of BridgeBio Pharma shares are owned by institutional investors. 19.7% of Arcus Biosciences shares are owned by company insiders. Comparatively, 40.3% of BridgeBio Pharma shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
Arcus Biosciences has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, BridgeBio Pharma has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.
Summary
Arcus Biosciences beats BridgeBio Pharma on 7 of the 13 factors compared between the two stocks.
