Analyzing Arcus Biosciences (RCUS) and Its Competitors

Arcus Biosciences (NYSE:RCUS) is one of 843 public companies in the “Biotechnology” industry, but how does it weigh in compared to its peers? We will compare Arcus Biosciences to related companies based on the strength of its valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Volatility and Risk

Arcus Biosciences has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Arcus Biosciences’ peers have a beta of -1.88, suggesting that their average share price is 288% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Arcus Biosciences and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcus Biosciences	1	3	12	0	2.69
Arcus Biosciences Competitors	9903	15310	45656	1602	2.54

Arcus Biosciences currently has a consensus price target of $39.36, suggesting a potential upside of 125.58%. As a group, “Biotechnology” companies have a potential upside of 126.25%. Given Arcus Biosciences’ peers higher probable upside, analysts plainly believe Arcus Biosciences has less favorable growth aspects than its peers.

Profitability

This table compares Arcus Biosciences and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arcus Biosciences	-453.00%	-91.65%	-46.72%
Arcus Biosciences Competitors	-12,319.70%	-407.93%	-30.95%

Valuation and Earnings

This table compares Arcus Biosciences and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Arcus Biosciences	$247.00 million	-$353.00 million	-4.81
Arcus Biosciences Competitors	$728.85 million	$11.28 million	-18.80

Arcus Biosciences’ peers have higher revenue and earnings than Arcus Biosciences. Arcus Biosciences is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

92.9% of Arcus Biosciences shares are held by institutional investors. Comparatively, 47.8% of shares of all “Biotechnology” companies are held by institutional investors. 7.6% of Arcus Biosciences shares are held by insiders. Comparatively, 13.1% of shares of all “Biotechnology” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Arcus Biosciences beats its peers on 7 of the 13 factors compared.

Arcus Biosciences Company Profile

Arcus Biosciences is a clinical-stage biopharmaceutical company focused on developing medicines for cancer. Founded in 2015 and headquartered in Hayward, California, the company researches therapies that target immune pathways and other processes involved in tumor growth. Its pipeline consists of investigational medicines, including antibody and small-molecule candidates designed to be used alone or in combination. Arcus’s research has focused on areas such as checkpoint inhibition and the adenosine pathway; its candidates are under clinical development and are not established treatments.