Analyzing Arcus Biosciences (NYSE:RCUS) & BridgeBio Pharma (NASDAQ:BBIO)

Arcus Biosciences (NYSE:RCUS) and BridgeBio Pharma (NASDAQ:BBIO) are both healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.

Risk & Volatility

Arcus Biosciences has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, BridgeBio Pharma has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Arcus Biosciences and BridgeBio Pharma, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcus Biosciences	1	3	12	0	2.69
BridgeBio Pharma	1	2	19	0	2.82

Arcus Biosciences currently has a consensus target price of $39.64, suggesting a potential upside of 122.56%. BridgeBio Pharma has a consensus target price of $104.26, suggesting a potential upside of 39.02%. Given Arcus Biosciences’ higher probable upside, analysts plainly believe Arcus Biosciences is more favorable than BridgeBio Pharma.

Valuation and Earnings

This table compares Arcus Biosciences and BridgeBio Pharma”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arcus Biosciences	$247.00 million	9.18	-$353.00 million	($3.90)	-4.57
BridgeBio Pharma	$502.08 million	29.20	-$724.93 million	($3.04)	-24.67

Arcus Biosciences has higher earnings, but lower revenue than BridgeBio Pharma. BridgeBio Pharma is trading at a lower price-to-earnings ratio than Arcus Biosciences, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Arcus Biosciences and BridgeBio Pharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arcus Biosciences	-393.16%	-89.54%	-45.61%
BridgeBio Pharma	-97.03%	N/A	-61.19%

Insider & Institutional Ownership

92.9% of Arcus Biosciences shares are held by institutional investors. Comparatively, 99.8% of BridgeBio Pharma shares are held by institutional investors. 7.6% of Arcus Biosciences shares are held by company insiders. Comparatively, 14.2% of BridgeBio Pharma shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

BridgeBio Pharma beats Arcus Biosciences on 10 of the 13 factors compared between the two stocks.

About Arcus Biosciences

Arcus Biosciences, Inc., a clinical-stage biopharmaceutical company, develops and commercializes cancer therapies in the United States. The company's pipeline products include Domvanalimab, an anti-TIGIT antibody, which is in Phase 2 and Phase 3 clinical trial; and AB308, an investigational anti-TIGIT monoclonal antibody, which is in Phase 1b clinical trial to study people with advanced solid and hematologic malignancies. It also develops Etrumadenant, a dual A2a/A2b adenosine receptor antagonist, which is in Phase 2 clinical trial; Quemliclustat, a small-molecule CD73 inhibitor, which is Phase 1b and Phase 2 clinical trial; Zimberelimab, an anti-PD-1 antibody, which is in Phase 2 clinical trial for metastatic cell lung cancer and monotherapy; and AB521, an oral and small-molecule inhibitor of HIF-2a, which is in Phase 1 clinical trial for the treatment of Von Hippel-Lindau disease. In addition, the company's preclinical pipeline products include AB598, a CD39 antibody; and AB801, a small molecule Axl inhibitor. It has a clinical collaboration with AstraZeneca to evaluate domvanalimab in combination with durvalumab in a registrational phase 3 clinical trial in patients with unresectable Stage 3 NSCLC; and BVF Partners L.P. to support the discovery and development of compounds for the treatment of inflammatory diseases. Arcus Biosciences, Inc. was incorporated in 2015 and is headquartered in Hayward, California.

About BridgeBio Pharma

BridgeBio Pharma, Inc., a commercial-stage biopharmaceutical company, discovers, creates, tests, and delivers transformative medicines to treat patients who suffer from genetic diseases and cancers. Its products in development programs include AG10, a next-generation oral small molecule near-complete TTR stabilizer that is in Phase 3 clinical trial for the treatment of TTR amyloidosis, or transthyretin amyloid cardiomyopathy (ATTR-CM); low-dose infigratinib, an oral FGFR1-3 selective tyrosine kinase inhibitor, which is in Phase 3 double-blinded, placebo-controlled pivotal study for the treatment option for children with achondroplasia; and BBP-631, an AAV5 gene transfer product candidate that is in Phase 1/2 clinical trial for the treatment of congenital adrenal hyperplasia, or CAH, driven by 21-hydroxylase deficiency, or 21OHD. The company also develops Encaleret, a small molecule antagonist of the calcium sensing receptor, or CaSR, which is in phase 3 clinical trial for treating autosomal dominant hypocalcemia type 1, or ADH1; and BBP-418, a glycosylation substrate pro-drug that is in Phase 3 clinical trial for treating limb-girdle muscular dystrophy type 2I/R9 (LGMD2I/R9). In addition, it engages in developing products for mendelian, oncology, and gene therapy diseases. BridgeBio Pharma, Inc. has license and collaboration agreements with the Leland Stanford Junior University; and Leidos Biomedical Research, Inc. The company was founded in 2015 and is headquartered in Palo Alto, California.