Arcutis Biotherapeutics (NASDAQ:ARQT – Get Free Report) and Synlogic (NASDAQ:SYBX – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, risk, profitability and valuation.
Valuation and Earnings
This table compares Arcutis Biotherapeutics and Synlogic’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arcutis Biotherapeutics | $11.66 million | 47.39 | -$311.46 million | ($5.54) | -1.62 |
| Synlogic | $1.18 million | 27.39 | -$66.15 million | ($0.93) | -0.51 |
Synlogic has lower revenue, but higher earnings than Arcutis Biotherapeutics. Arcutis Biotherapeutics is trading at a lower price-to-earnings ratio than Synlogic, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Analyst Ratings
This is a breakdown of current ratings and target prices for Arcutis Biotherapeutics and Synlogic, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arcutis Biotherapeutics | 0 | 0 | 7 | 0 | 3.00 |
| Synlogic | 0 | 0 | 3 | 0 | 3.00 |
Arcutis Biotherapeutics presently has a consensus price target of $44.75, suggesting a potential upside of 399.44%. Synlogic has a consensus price target of $6.33, suggesting a potential upside of 1,244.37%. Given Synlogic’s higher possible upside, analysts clearly believe Synlogic is more favorable than Arcutis Biotherapeutics.
Profitability
This table compares Arcutis Biotherapeutics and Synlogic’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Arcutis Biotherapeutics | -2,837.94% | -188.88% | -79.79% |
| Synlogic | -6,573.82% | -85.18% | -63.40% |
Institutional and Insider Ownership
47.2% of Synlogic shares are owned by institutional investors. 20.7% of Arcutis Biotherapeutics shares are owned by company insiders. Comparatively, 7.3% of Synlogic shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Synlogic beats Arcutis Biotherapeutics on 8 of the 13 factors compared between the two stocks.
About Arcutis Biotherapeutics
Arcutis Biotherapeutics, Inc., a biopharmaceutical company, focuses on developing and commercializing treatments for dermatological diseases. Its lead product candidate is ARQ-151, a topical roflumilast cream that has completed Phase III clinical trials for the treatment of plaque psoriasis and atopic dermatitis. The company is also developing ARQ-154, a topical foam formulation of roflumilast for the treatment of seborrheic dermatitis and scalp psoriasis; ARQ-252, a selective topical janus kinase type 1 inhibitor for hand eczema and vitiligo; ARQ-255, a topical formulation of ivarmacitinib designed to reach deeper into the skin in order to treat alopecia areata; and ARQ-234, a CD200R fusion protein for the treatment of moderate-to-severe atopic dermatitis. The company was formerly known as Arcutis, Inc. and changed its name to Arcutis Biotherapeutics, Inc. in October 2019. Arcutis Biotherapeutics, Inc. was incorporated in 2016 and is headquartered in Westlake Village, California.
About Synlogic
Synlogic, Inc., a clinical-stage biopharmaceutical company, engages in the discovery and development of synthetic biotics to treat metabolic and immunological diseases in the United States. Its pipeline include SYNB1618, an orally administered, non-systemically absorbed drug candidate to treat phenylketonuria; SYNB1934, an orally administered, non-systemically absorbed drug candidate, which is in Phase III clinical trial to treat phenylketonuria; SYNB1353, an orally administered, non-systemically absorbed drug candidate, which is in Phase II clinical to treat homocystinuria; SYNB8802, an orally administered, non-systemically absorbed drug candidate that is in Phase II clinical trial for the treatment of enteric hyperoxaluria; and SYNB2081 to lower uric acid for the potential treatment of gout. The company is also developing SYNB1891, an intratumorally administered synthetic biotic medicine to treat solid tumors and lymphoma. It has a collaboration agreement with F. Hoffmann-La Roche Ltd and Hoffmann-La Roche Inc. for the research and pre-clinical development of a synthetic biotic medicine for the treatment of inflammatory bowel disease; and Ginkgo Bioworks, Inc. Synlogic, Inc. is based in Cambridge, Massachusetts.
Receive News & Ratings for Arcutis Biotherapeutics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Arcutis Biotherapeutics and related companies with MarketBeat.com's FREE daily email newsletter.
