SELLAS Life Sciences Group (NASDAQ:SLS – Get Free Report) and Arcutis Biotherapeutics (NASDAQ:ARQT – Get Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.
Profitability
This table compares SELLAS Life Sciences Group and Arcutis Biotherapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SELLAS Life Sciences Group | N/A | -132.51% | -92.79% |
| Arcutis Biotherapeutics | -35.40% | -62.62% | -25.16% |
Volatility and Risk
SELLAS Life Sciences Group has a beta of 2.26, indicating that its stock price is 126% more volatile than the S&P 500. Comparatively, Arcutis Biotherapeutics has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SELLAS Life Sciences Group | $1.00 million | 206.91 | -$30.88 million | ($0.32) | -6.14 |
| Arcutis Biotherapeutics | $196.54 million | 9.32 | -$140.04 million | ($0.75) | -20.37 |
SELLAS Life Sciences Group has higher earnings, but lower revenue than Arcutis Biotherapeutics. Arcutis Biotherapeutics is trading at a lower price-to-earnings ratio than SELLAS Life Sciences Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations for SELLAS Life Sciences Group and Arcutis Biotherapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SELLAS Life Sciences Group | 0 | 0 | 1 | 0 | 3.00 |
| Arcutis Biotherapeutics | 0 | 1 | 6 | 0 | 2.86 |
SELLAS Life Sciences Group presently has a consensus price target of $7.00, indicating a potential upside of 256.23%. Arcutis Biotherapeutics has a consensus price target of $19.80, indicating a potential upside of 29.58%. Given SELLAS Life Sciences Group’s stronger consensus rating and higher probable upside, research analysts clearly believe SELLAS Life Sciences Group is more favorable than Arcutis Biotherapeutics.
Institutional and Insider Ownership
17.4% of SELLAS Life Sciences Group shares are held by institutional investors. 1.4% of SELLAS Life Sciences Group shares are held by company insiders. Comparatively, 9.4% of Arcutis Biotherapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
SELLAS Life Sciences Group beats Arcutis Biotherapeutics on 9 of the 14 factors compared between the two stocks.
About SELLAS Life Sciences Group
SELLAS Life Sciences Group, Inc., a late-stage clinical biopharmaceutical company, focuses on the development of novel cancer immunotherapies for various cancer indications in the United States. The company’s lead product candidate is galinpepimut-S (GPS), a cancer immunotherapeutic agent that targets Wilms tumor 1, which is in Phase 3 clinical trials for the treatment of acute myeloid leukemia; and in Phase 1/2 clinical trials for the treatment for ovarian cancer. It has a strategic collaboration with Merck & Co., Inc. to evaluate GPS as it is administered in combination with PD1 blocker pembrolizumab in a Phase 1/2 clinical trial enrolling patients in up to five cancer indications, including hematologic malignancies and solid tumors; and GenFleet Therapeutics (Shanghai), Inc. for the development and commercialization of GFH009, a highly selective small molecule CDK9 inhibitor, currently under Phase 1 clinical trials. SELLAS Life Sciences Group, Inc. is headquartered in New York, New York.
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 ZORYVE for the treatment of scalp and body psoriasis and seborrheic dermatitis; ARQ-252, a selective topical janus kinase type 1 inhibitor for hand eczema and vitiligo; ARQ-255, a topical JAK1 inhibitor for 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.
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