Cytokinetics (NASDAQ:CYTK – Get Free Report) and Arcus Biosciences (NYSE:RCUS – Get Free Report) are both mid-cap healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Cytokinetics and Arcus Biosciences, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cytokinetics | 1 | 1 | 18 | 0 | 2.85 |
| Arcus Biosciences | 1 | 3 | 10 | 0 | 2.64 |
Cytokinetics currently has a consensus target price of $103.37, indicating a potential upside of 58.77%. Arcus Biosciences has a consensus target price of $38.30, indicating a potential upside of 45.60%. Given Cytokinetics’ stronger consensus rating and higher possible upside, equities analysts plainly believe Cytokinetics is more favorable than Arcus Biosciences.
Risk & Volatility
Profitability
This table compares Cytokinetics and Arcus Biosciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cytokinetics | -1,321.12% | N/A | -51.01% |
| Arcus Biosciences | -393.16% | -89.54% | -45.61% |
Institutional and Insider Ownership
92.9% of Arcus Biosciences shares are owned by institutional investors. 2.6% of Cytokinetics 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Cytokinetics and Arcus Biosciences”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cytokinetics | $88.04 million | 92.02 | -$784.96 million | ($7.22) | -9.02 |
| Arcus Biosciences | $247.00 million | 13.56 | -$353.00 million | ($3.90) | -6.74 |
Arcus Biosciences has higher revenue and earnings than Cytokinetics. Cytokinetics is trading at a lower price-to-earnings ratio than Arcus Biosciences, indicating that it is currently the more affordable of the two stocks.
Summary
Arcus Biosciences beats Cytokinetics on 9 of the 14 factors compared between the two stocks.
About Cytokinetics
Cytokinetics, Incorporated, a late-stage biopharmaceutical company, focuses on discovering, developing, and commercializing muscle activators and inhibitors as potential treatments for debilitating diseases. The company develops small molecule drug candidates primarily engineered to impact muscle function and contractility. Its drug candidates include omecamtiv mecarbil, a novel cardiac myosin activator that is in Phase III clinical trial in patients with heart failure. The company also develops CK-136, a novel cardiac troponin activator that is in Phase I clinical trial; CK-586, a small molecule cardiac myosin inhibitor, that is in Phase I clinical trial; and aficamten, a novel cardiac myosin inhibitor, which is in Phase III clinical trial for the treatment of patients with symptomatic obstructive hypertrophic cardiomyopathy. Cytokinetics, Incorporated has a strategic alliance with Ji Xing Pharmaceuticals Limited. The company was incorporated in 1997 and is headquartered in South San Francisco, California.
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.
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