Critical Review: Acumen Pharmaceuticals (NASDAQ:ABOS) vs. SQZ Biotechnologies (NYSE:SQZ)

Acumen Pharmaceuticals (NASDAQ:ABOSGet Rating) and SQZ Biotechnologies (NYSE:SQZGet Rating) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Acumen Pharmaceuticals and SQZ Biotechnologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Acumen Pharmaceuticals 0 0 4 0 3.00
SQZ Biotechnologies 0 0 2 0 3.00

Acumen Pharmaceuticals presently has a consensus target price of $21.25, suggesting a potential upside of 566.14%. SQZ Biotechnologies has a consensus target price of $28.50, suggesting a potential upside of 831.37%. Given SQZ Biotechnologies’ higher probable upside, analysts clearly believe SQZ Biotechnologies is more favorable than Acumen Pharmaceuticals.

Profitability

This table compares Acumen Pharmaceuticals and SQZ Biotechnologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Acumen Pharmaceuticals N/A -17.45% -13.08%
SQZ Biotechnologies -303.43% -57.79% -32.71%

Institutional & Insider Ownership

64.4% of Acumen Pharmaceuticals shares are held by institutional investors. Comparatively, 66.6% of SQZ Biotechnologies shares are held by institutional investors. 4.7% of Acumen Pharmaceuticals shares are held by company insiders. Comparatively, 18.0% of SQZ Biotechnologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Acumen Pharmaceuticals and SQZ Biotechnologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Acumen Pharmaceuticals $1.44 million 89.72 -$100.61 million N/A N/A
SQZ Biotechnologies $27.10 million 3.18 -$68.74 million ($2.64) -1.16

SQZ Biotechnologies has higher revenue and earnings than Acumen Pharmaceuticals.

About Acumen Pharmaceuticals (Get Rating)

Acumen Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, discovers and develops therapies for the treatment of Alzheimer's disease. The company focuses on advancing a targeted immunotherapy drug candidate ACU193, a humanized monoclonal antibody that is in Phase I clinical-stage to target soluble amyloid-beta oligomers. Acumen Pharmaceuticals, Inc. was incorporated in 1996 and is headquartered in Charlottesville, Virginia.

About SQZ Biotechnologies (Get Rating)

SQZ Biotechnologies Company, a clinical-stage biotechnology company, develops cell therapies for patients with cancer, autoimmune, infectious diseases, and other serious conditions. Its lead product candidate is SQZ-PBMC-HPV, from its SQZ Antigen Presenting Cells platform, which is in a Phase I clinical trial as a monotherapy and in combination with other immuno-oncology agents for the treatment of HPV16+ advanced or metastatic solid tumors, including cervical, head-and-neck, anal, penile, vulvar, and vaginal cancer. The company also develops SQZ-AAC-HPV, which is in a Phase I clinical trial for the treatment of HPV16+ advanced or metastatic solid tumors in monotherapy and in combinations with other immune-oncology agents. Its additional platforms in development are SQZ Activating Antigen Carriers; and SQZ Tolerizing Antigen Carriers. SQZ Biotechnologies Company was incorporated in 2013 and is headquartered in Watertown, Massachusetts.

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