Immunovant (NASDAQ:IMVT) & Arcus Biosciences (NYSE:RCUS) Head-To-Head Contrast

Immunovant (NASDAQ:IMVT) and Arcus Biosciences (NYSE:RCUS) are both mid-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Volatility and Risk

Immunovant has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Arcus Biosciences has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Profitability

This table compares Immunovant and Arcus Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Immunovant	N/A	-63.17%	-58.01%
Arcus Biosciences	-142.91%	-65.77%	-32.51%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Immunovant and Arcus Biosciences, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Immunovant	1	4	6	0	2.45
Arcus Biosciences	1	3	7	1	2.67

Immunovant currently has a consensus target price of $32.44, indicating a potential upside of 10.73%. Arcus Biosciences has a consensus target price of $30.80, indicating a potential upside of 27.03%. Given Arcus Biosciences’ stronger consensus rating and higher possible upside, analysts clearly believe Arcus Biosciences is more favorable than Immunovant.

Earnings & Valuation

This table compares Immunovant and Arcus Biosciences”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Immunovant	N/A	N/A	-$413.84 million	($2.69)	-10.89
Arcus Biosciences	$247.00 million	12.31	-$353.00 million	($3.30)	-7.35

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

Insider and Institutional Ownership

47.1% of Immunovant shares are owned by institutional investors. Comparatively, 92.9% of Arcus Biosciences shares are owned by institutional investors. 1.8% of Immunovant shares are owned by insiders. Comparatively, 9.6% of Arcus Biosciences shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Arcus Biosciences beats Immunovant on 11 of the 14 factors compared between the two stocks.

About Immunovant

Immunovant, Inc., a clinical-stage biopharmaceutical company, develops monoclonal antibodies for the treatment of autoimmune diseases. It develops batoclimab, a novel fully human monoclonal antibody that target the neonatal fragment crystallizable receptor for the treatment of myasthenia gravis, thyroid eye disease, chronic inflammatory demyelinating polyneuropathy, and Graves diseases, as well as warm autoimmune hemolytic anemia. The company is headquartered in New York, New York. Immunovant, Inc. operates as a subsidiary of Roivant Sciences Ltd.

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.