Reviewing Kura Oncology (NASDAQ:KURA) & AbCellera Biologics (NASDAQ:ABCL)

Kura Oncology (NASDAQ:KURA) and AbCellera Biologics (NASDAQ:ABCL) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Kura Oncology and AbCellera Biologics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kura Oncology	1	1	10	0	2.75
AbCellera Biologics	1	1	4	1	2.71

Kura Oncology currently has a consensus price target of $25.40, indicating a potential upside of 124.78%. AbCellera Biologics has a consensus price target of $12.83, indicating a potential upside of 12.47%. Given Kura Oncology’s stronger consensus rating and higher probable upside, analysts clearly believe Kura Oncology is more favorable than AbCellera Biologics.

Profitability

This table compares Kura Oncology and AbCellera Biologics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kura Oncology	-384.30%	-207.18%	-45.17%
AbCellera Biologics	-248.83%	-17.49%	-12.36%

Volatility & Risk

Kura Oncology has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, AbCellera Biologics has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Valuation and Earnings

This table compares Kura Oncology and AbCellera Biologics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kura Oncology	$67.48 million	14.90	-$278.67 million	($3.37)	-3.35
AbCellera Biologics	$75.13 million	46.56	-$146.41 million	($0.54)	-21.13

AbCellera Biologics has higher revenue and earnings than Kura Oncology. AbCellera Biologics is trading at a lower price-to-earnings ratio than Kura Oncology, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

61.4% of AbCellera Biologics shares are held by institutional investors. 7.6% of Kura Oncology shares are held by company insiders. Comparatively, 28.4% of AbCellera Biologics shares are held by company 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

AbCellera Biologics beats Kura Oncology on 11 of the 15 factors compared between the two stocks.

About Kura Oncology

Kura Oncology, Inc., a clinical-stage biopharmaceutical company, develops medicines for the treatment of cancer. The company’s pipeline consists of small molecule product candidates that target cancer. Its lead product candidates are ziftomenib, an orally bioavailable small molecule inhibitor of the menin-KMT2A interaction for the treatment of genetically defined subsets of acute leukemias, including acute myeloid leukemia and acute lymphoblastic leukemia; tipifarnib, an orally bioavailable farnesyl transferase inhibitor combination with alpelisib for patients with PIK3CA-dependent HNSCC; and KO-2806, a farnesyl transferase inhibitor for the treatment of solid tumors. It has a clinical collaboration with Novartis Pharma AG to evaluate the combination of tipifarnib and alpelisib in patients with head and neck squamous cell carcinoma whose tumors have HRAS overexpression and/or PIK3CA mutation and/or amplification. The company was founded in 2014 and is headquartered in San Diego, California.

About AbCellera Biologics

AbCellera Biologics Inc. builds an engine for antibody drug discovery and development. Its engine discovers antibodies from natural immune responses, which are pre-enriched for antibodies. The company’s preclinical products are ABCL635 for metabolic and endocrine conditions; and ABCL575 for atopic dermatitis. It has a research collaboration and license agreement with Eli Lilly and Company; a research collaboration with Confo Therapeutics for the discovery of therapeutic antibody candidates targeting two undisclosed GPCR targets; and strategic collaboration with Biogen Inc. to discover therapeutic antibodies for neurological conditions, as well as collaboration with Viking Global Investors and ArrowMark Partners. The company was incorporated in 2012 and is headquartered in Vancouver, Canada.