Arcturus Therapeutics (NASDAQ: ARCT) and Aclaris Therapeutics (NASDAQ:ACRS) are both small-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Arcturus Therapeutics and Aclaris Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arcturus Therapeutics 0 6 2 0 2.25
Aclaris Therapeutics 0 0 4 0 3.00

Arcturus Therapeutics currently has a consensus price target of $1.54, indicating a potential downside of 83.39%. Aclaris Therapeutics has a consensus price target of $41.25, indicating a potential upside of 60.88%. Given Aclaris Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Aclaris Therapeutics is more favorable than Arcturus Therapeutics.

Valuation and Earnings

This table compares Arcturus Therapeutics and Aclaris Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arcturus Therapeutics N/A N/A -$24.60 million ($5.32) -1.74
Aclaris Therapeutics N/A N/A -$48.07 million ($2.16) -11.87

Aclaris Therapeutics is trading at a lower price-to-earnings ratio than Arcturus Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Arcturus Therapeutics and Aclaris Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arcturus Therapeutics N/A -36.83% -34.70%
Aclaris Therapeutics N/A -30.76% -29.25%

Insider and Institutional Ownership

92.0% of Aclaris Therapeutics shares are held by institutional investors. 16.3% of Aclaris Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Aclaris Therapeutics beats Arcturus Therapeutics on 8 of the 10 factors compared between the two stocks.

Arcturus Therapeutics Company Profile

Arcturus Therapeutics Ltd, formerly Alcobra Ltd, is an Israel-based preclinical-stage biopharmaceutical company primarily focused on the discovery, development and commercialization of ribonucleic acid (RNA) medicines using lipid-mediated nanoparticle delivery system (LUNAR) and Unlocked Nucleomonomer Agent (UNA) Oligomer chemistry technology platforms. The Company, through Arcturus Therapeutics Inc, its wholly owned subsidiary based in the United States, is focused on developing RNA medicines for rare, infectious, fibrotic and respiratory diseases with unmet medical needs, including cystic fibrosis, nonalcoholic steatohepatitis (NASH) and rare liver diseases, as well as replicon RNA vaccines.

Aclaris Therapeutics Company Profile

Aclaris Therapeutics, Inc. is a dermatologist-led, biopharmaceutical company. The Company is focused on identifying, developing and commercializing differentiated drugs for the treatment of dermatological indications. The Company is also focused on the discovery and development of kinase inhibitors to treat inflammatory and immunological disorders and cancer. The Company’s drug discovery platform KINect technology is a kinase-focused drug discovery engine utilizing computational chemistry to integrate proprietary compound collections and highly experienced biologists and medicinal chemists to identify and advance potential candidates into preclinical and clinical development.

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