Contrasting Rigel Pharmaceuticals (NASDAQ:RIGL) and Aclaris Therapeutics (NASDAQ:ACRS)

Rigel Pharmaceuticals (NASDAQ:RIGLGet Free Report) and Aclaris Therapeutics (NASDAQ:ACRSGet Free Report) are both small-cap healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

66.2% of Rigel Pharmaceuticals shares are held by institutional investors. Comparatively, 98.3% of Aclaris Therapeutics shares are held by institutional investors. 10.5% of Rigel Pharmaceuticals shares are held by company insiders. Comparatively, 4.8% of Aclaris Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Rigel Pharmaceuticals has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Aclaris Therapeutics has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Rigel Pharmaceuticals 116.30% 22.95% 17.19%
Aclaris Therapeutics -921.50% -61.65% -42.41%

Earnings and Valuation

This table compares Rigel Pharmaceuticals and Aclaris Therapeutics”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rigel Pharmaceuticals $294.28 million 2.97 $367.02 million $16.32 2.89
Aclaris Therapeutics $7.83 million 95.00 -$64.92 million ($0.58) -9.17

Rigel Pharmaceuticals has higher revenue and earnings than Aclaris Therapeutics. Aclaris Therapeutics is trading at a lower price-to-earnings ratio than Rigel Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Rigel Pharmaceuticals and Aclaris Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rigel Pharmaceuticals 0 3 4 0 2.57
Aclaris Therapeutics 1 0 5 3 3.11

Rigel Pharmaceuticals currently has a consensus target price of $59.00, indicating a potential upside of 24.89%. Aclaris Therapeutics has a consensus target price of $11.33, indicating a potential upside of 113.03%. Given Aclaris Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Aclaris Therapeutics is more favorable than Rigel Pharmaceuticals.

Summary

Rigel Pharmaceuticals beats Aclaris Therapeutics on 9 of the 15 factors compared between the two stocks.

About Rigel Pharmaceuticals

(Get Free Report)

Rigel Pharmaceuticals, Inc., a biotechnology company, engages in discovering, developing, and providing therapies that enhance the lives of patients with hematologic disorders and cancer. The company’s commercialized products include Tavalisse, an oral spleen tyrosine kinase inhibitor for the treatment of adult patients with chronic immune thrombocytopenia; Rezlidhia, a non-intensive monotherapy for the treatment of adult patients with relapsed or refractory (R/R) acute myeloid leukemia (AML) with a susceptible isocitrate dehydrogenase-1 (IDH1) mutation as detected by an FDA-approved test; and GAVRETO, a once daily, small molecule, oral, kinase inhibitor for the treatment of adult patients with metastatic rearranged during transfection (RET) fusion-positive non-small cell lung cancer, as well as for the treatment of adult and pediatric patients 12 years of age and older with advanced or metastatic RET fusion-positive thyroid cancer. It also develops R289, an oral IRAK1/4 Inhibitor, which is in Phase 1b clinical trials for the treatment of hematology-oncology, autoimmune, and inflammatory diseases; and a receptor-interacting serine/threonine-protein kinase 1 (RIPK1) inhibitor program in clinical development with partner Eli Lilly and Company. In addition, the company has product candidates in clinical development with partners BerGenBio ASA and Daiichi Sankyo. The company has strategic development collaboration with The University of Texas MD Anderson Cancer Center for the development of REZLIDHIA (Olutasidenib) in acute myeloid leukemia (AML) and other hematologic cancers. The company was incorporated in 1996 and is headquartered in South San Francisco, California.

About Aclaris Therapeutics

(Get Free Report)

Aclaris Therapeutics, Inc. a clinical-stage biopharmaceutical company, engages in the development of novel drug candidates for immune-inflammatory diseases in the United States. The company operates through two segments, Therapeutics and Contract Research. The Therapeutics segment is involved in identifying and developing therapies to address significant unmet needs for immuno-inflammatory diseases. The Contract Research segment provides laboratory services. It develops Zunsemetinib (ATI-450), an MK2 inhibitor which is under Phase 1b/2 trials for the treatment of metastatic breast and pancreatic cancer; ATI-1777, a soft JAK 1/3 inhibitor, completed Phase 2b trails for the treatment of moderate to severe atopic dermatitis and other dermatologic conditions; and ATI-2138, an oral covalent inhibitor of ITK and JAK3 inhibitor under Phase 1 trials as a treatment for T cell-mediated autoimmune diseases. The company was incorporated in 2012 and is headquartered in Wayne, Pennsylvania.

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