Applied Genetic Technologies (NASDAQ:AGTC) and Arsanis (NASDAQ:ASNS) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.

Earnings and Valuation

This table compares Applied Genetic Technologies and Arsanis’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Applied Genetic Technologies $24.19 million 4.97 -$21.30 million ($1.18) -5.62
Arsanis N/A N/A -$33.87 million ($16.23) -0.10

Applied Genetic Technologies has higher revenue and earnings than Arsanis. Applied Genetic Technologies is trading at a lower price-to-earnings ratio than Arsanis, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

48.5% of Applied Genetic Technologies shares are held by institutional investors. Comparatively, 68.7% of Arsanis shares are held by institutional investors. 5.6% of Applied Genetic Technologies shares are held by insiders. Comparatively, 50.9% of Arsanis shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Applied Genetic Technologies and Arsanis, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Applied Genetic Technologies 0 2 3 0 2.60
Arsanis 0 3 1 0 2.25

Applied Genetic Technologies presently has a consensus target price of $7.40, suggesting a potential upside of 11.61%. Arsanis has a consensus target price of $18.50, suggesting a potential upside of 1,034.97%. Given Arsanis’ higher probable upside, analysts plainly believe Arsanis is more favorable than Applied Genetic Technologies.

Profitability

This table compares Applied Genetic Technologies and Arsanis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Applied Genetic Technologies -88.06% -19.77% -16.57%
Arsanis N/A N/A N/A

Summary

Arsanis beats Applied Genetic Technologies on 7 of the 12 factors compared between the two stocks.

About Applied Genetic Technologies

Applied Genetic Technologies Corporation, a clinical-stage biotechnology company, develops transformational genetic therapies for patients suffering from rare and debilitating diseases. The company's lead products consist of four ophthalmology development programs across three targets, including X-linked retinoschisis that is in Phase I/II clinical trials; X-linked retinitis pigmentosa, which is in Phase I/II clinical trials; and achromatopsia that is in Phase I/II clinical trials for the treatment of inherited retinal diseases, as well as a preclinical program in adrenoleukodystrophy, which is a disease of the central nervous system and otology. It has collaboration agreements with Biogen MA, Inc., 4D Molecular Therapeutics, Synpromics Limited, and Bionic Sight, LLC, as well as the University of Florida Research Foundation. The company was founded in 1999 and is headquartered in Alachua, Florida.

About Arsanis

Arsanis, Inc., a clinical-stage biopharmaceutical company, focuses on applying monoclonal antibody (mAb) immunotherapies to address infectious diseases. Its lead product candidate is ASN100, a mAb therapeutic in Phase II clinical development for the prevention of staphylococcus aureus pneumonia in mechanically ventilated patients. The company's preclinical pipeline comprises mAbs targeting various bacterial and viral pathogens, including respiratory syncytial virus. Arsanis, Inc. was founded in 2010 and is headquartered in Waltham, Massachusetts.

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