Nuvation Bio (NYSE:NUVB) vs. Aclaris Therapeutics (NASDAQ:ACRS) Critical Analysis

Aclaris Therapeutics (NASDAQ:ACRSGet Free Report) and Nuvation Bio (NYSE:NUVBGet Free Report) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

98.3% of Aclaris Therapeutics shares are held by institutional investors. Comparatively, 61.7% of Nuvation Bio shares are held by institutional investors. 4.8% of Aclaris Therapeutics shares are held by insiders. Comparatively, 30.1% of Nuvation Bio shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Aclaris Therapeutics and Nuvation Bio, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aclaris Therapeutics 1 0 5 3 3.11
Nuvation Bio 1 2 10 0 2.69

Aclaris Therapeutics presently has a consensus target price of $11.33, indicating a potential upside of 98.14%. Nuvation Bio has a consensus target price of $13.00, indicating a potential upside of 112.38%. Given Nuvation Bio’s higher probable upside, analysts plainly believe Nuvation Bio is more favorable than Aclaris Therapeutics.

Profitability

This table compares Aclaris Therapeutics and Nuvation Bio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aclaris Therapeutics -921.50% -61.65% -42.41%
Nuvation Bio -88.18% -46.59% -22.01%

Volatility and Risk

Aclaris Therapeutics has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Nuvation Bio has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aclaris Therapeutics $7.83 million 102.14 -$64.92 million ($0.58) -9.86
Nuvation Bio $62.90 million 34.17 -$204.63 million ($0.44) -13.91

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

Summary

Nuvation Bio beats Aclaris Therapeutics on 9 of the 15 factors compared between the two stocks.

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.

About Nuvation Bio

(Get Free Report)

Nuvation Bio Inc., a clinical-stage biopharmaceutical company, focuses on the development of therapeutic candidates for oncology. The company's lead product candidate is NUV-868, a BD2 selective oral small molecule BET inhibitor that epigenetically regulates proteins that control tumor growth and differentiation, including oncogenes comprising c-myc; NUV-1156, an AR binder Xtandi that address advanced stage prostate cancers with the potential to move into earlier lines typically treated with surgical prostatectomy; and drug-drug conjugate (DDC) platform which leverages a novel therapeutic approach within the drug-conjugate class of anti-cancer therapies to deliver anti-cancer therapeutics to cancer cells, as well as NUV-1176, a PARP inhibitor to address ER+ breast and ovarian cancer. The company was founded in 2018 and is headquartered in New York, New York.

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