ArQule (NASDAQ:ARQL) and Kaya (OTCMKTS:KAYS) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Profitability

This table compares ArQule and Kaya’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ArQule -805.61% -33.10% -26.87%
Kaya 183.23% N/A -100.00%

Valuation and Earnings

This table compares ArQule and Kaya’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ArQule $25.76 million 93.85 -$15.48 million ($0.16) -125.00
Kaya $1.14 million 4.47 $4.75 million N/A N/A

Kaya has lower revenue, but higher earnings than ArQule.

Risk and Volatility

ArQule has a beta of 2.49, suggesting that its stock price is 149% more volatile than the S&P 500. Comparatively, Kaya has a beta of -0.29, suggesting that its stock price is 129% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for ArQule and Kaya, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ArQule 0 6 3 0 2.33
Kaya 0 0 0 0 N/A

ArQule currently has a consensus target price of $17.50, indicating a potential downside of 12.50%. Given ArQule’s higher possible upside, equities analysts plainly believe ArQule is more favorable than Kaya.

Institutional & Insider Ownership

74.6% of ArQule shares are owned by institutional investors. 13.8% of ArQule shares are owned 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

ArQule beats Kaya on 8 of the 11 factors compared between the two stocks.

ArQule Company Profile

ArQule, Inc., a biopharmaceutical company, researches and develops therapeutics for the treatment of cancer and rare diseases in the United States. The company's pipeline includes ARQ 531, an orally bioavailable, potent and reversible dual inhibitor of wild type and C481S-mutant Bruton's tyrosine kinase that is in Phase I trial for patients with B-cell malignancies refractory to other therapeutic options; and miransertib (ARQ 092), a potent and selective inhibitor of the protein kinase B (AKT), a serine/threonine kinase, which is in Phase Ib in combination with the hormonal therapy and anastrozole in patients with advanced endometrial cancer. Its pipeline also comprises ARQ 75, a potent and selective inhibitor of AKT that is in Phase I clinical development for solid tumors harboring AKT, phosphoinositide 3-kinase or phosphatase, and tensin homolog loss mutations. In addition, the company's pipeline includes Derazantinib (ARQ 087), a multi-kinase inhibitor designed to preferentially inhibit the fibroblast growth factor receptor (FGFR) family of kinases that is in a registrational clinical trial in intrahepatic cholangiocarcinoma in patients with FGFR2 fusions. ArQule, Inc. has license agreements with Basilea Pharmaceutica Limited and Roivant Sciences Ltd. The company was founded in 1993 and is headquartered in Burlington, Massachusetts.

Kaya Company Profile

Kaya Holdings, Inc., through its subsidiary, Marijuana Holdings Americas, Inc., engages in the legal recreational and medical marijuana business in the United States. The company is involved in growing, cultivation, harvesting, and manufacturing medical marijuana. It also operates four retail outlets for the sale of recreational and medical cannabis under the Kaya Shack brand name in Oregon, as well as offers strain specific cannabis cigarettes under the Kaya Buddies name. The company was formerly known as Alternative Fuels America, Inc. and changed its name to Kaya Holdings, Inc. in April 2015. Kaya Holdings, Inc. was incorporated in 1993 and is headquartered in Fort Lauderdale, Florida.

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