Arcus Biosciences (NYSE:RCUS) versus Anika Therapeutics (NASDAQ:ANIK) Critical Review

Anika Therapeutics (NASDAQ:ANIK) and Arcus Biosciences (NYSE:RCUS) are both healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Profitability

This table compares Anika Therapeutics and Arcus Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Anika Therapeutics	-3.14%	0.20%	0.15%
Arcus Biosciences	-393.16%	-89.54%	-45.61%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Anika Therapeutics and Arcus Biosciences, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anika Therapeutics	1	1	2	0	2.25
Arcus Biosciences	1	3	12	0	2.69

Anika Therapeutics presently has a consensus target price of $22.00, indicating a potential upside of 51.20%. Arcus Biosciences has a consensus target price of $39.36, indicating a potential upside of 115.73%. Given Arcus Biosciences’ stronger consensus rating and higher possible upside, analysts clearly believe Arcus Biosciences is more favorable than Anika Therapeutics.

Valuation & Earnings

This table compares Anika Therapeutics and Arcus Biosciences”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Anika Therapeutics	$112.82 million	1.73	-$10.88 million	($0.27)	-53.89
Arcus Biosciences	$247.00 million	9.41	-$353.00 million	($3.63)	-5.03

Anika Therapeutics has higher earnings, but lower revenue than Arcus Biosciences. Anika Therapeutics is trading at a lower price-to-earnings ratio than Arcus Biosciences, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Anika Therapeutics has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500. Comparatively, Arcus Biosciences has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Insider and Institutional Ownership

91.5% of Anika Therapeutics shares are owned by institutional investors. Comparatively, 92.9% of Arcus Biosciences shares are owned by institutional investors. 12.1% of Anika Therapeutics shares are owned by company insiders. Comparatively, 7.6% of Arcus Biosciences shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Arcus Biosciences beats Anika Therapeutics on 8 of the 14 factors compared between the two stocks.

About Anika Therapeutics

Anika Therapeutics, Inc., a joint preservation company, creates and delivers advancements in early intervention orthopedic care in the areas of osteoarthritis (OA) pain management, regenerative solutions, sports medicine, and arthrosurface joint solutions in the United States, Europe, and internationally. The company develops, manufactures, and commercializes products based on hyaluronic acid (HA) technology platform. Its OA pain management products includes Monovisc and Orthovisc, an injectable HA-based viscosupplement for the pain relief from osteoarthritis conditions; and Cingal, a single-injection OA pain management product to provide both short- and long-term pain relief. The company’s joint preservation and restoration product family comprises and orthopedic regenerative solutions, including Hyalofast and Tactoset; sports medicine solutions used to repair and reconstruct damaged ligaments and tendons; and preserving joint solutions, including partial joint replacement, joint resurfacing, and invasive and bone sparing implants, which are designed to treat upper and lower extremity orthopedic conditions. In addition, it offers non-orthopedic products comprising HA-based products for non-orthopedic applications including Hyvisc, a molecular weight injectable HA veterinary product; Hyalobarrier, an anti-adhesion barrier indicated for use after abdominal-pelvic surgeries; and Hyalomatrix used for the treatment of burns and ulcers, as well as products used for the treatment of ears, nose and throat disorders, and ophthalmic products. The company was founded in 1983 and is headquartered in Bedford, Massachusetts.

About Arcus Biosciences

Arcus Biosciences, Inc., a clinical-stage biopharmaceutical company, develops and commercializes cancer therapies in the United States. The company's pipeline products include Domvanalimab, an anti-TIGIT antibody, which is in Phase 2 and Phase 3 clinical trial; and AB308, an investigational anti-TIGIT monoclonal antibody, which is in Phase 1b clinical trial to study people with advanced solid and hematologic malignancies. It also develops Etrumadenant, a dual A2a/A2b adenosine receptor antagonist, which is in Phase 2 clinical trial; Quemliclustat, a small-molecule CD73 inhibitor, which is Phase 1b and Phase 2 clinical trial; Zimberelimab, an anti-PD-1 antibody, which is in Phase 2 clinical trial for metastatic cell lung cancer and monotherapy; and AB521, an oral and small-molecule inhibitor of HIF-2a, which is in Phase 1 clinical trial for the treatment of Von Hippel-Lindau disease. In addition, the company's preclinical pipeline products include AB598, a CD39 antibody; and AB801, a small molecule Axl inhibitor. It has a clinical collaboration with AstraZeneca to evaluate domvanalimab in combination with durvalumab in a registrational phase 3 clinical trial in patients with unresectable Stage 3 NSCLC; and BVF Partners L.P. to support the discovery and development of compounds for the treatment of inflammatory diseases. Arcus Biosciences, Inc. was incorporated in 2015 and is headquartered in Hayward, California.