Puma Biotechnology (NASDAQ:PBYI) and Arcus Biosciences (NYSE:RCUS) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Puma Biotechnology -73.45% -301.41% -74.05%
Arcus Biosciences N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Puma Biotechnology and Arcus Biosciences, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Puma Biotechnology 3 4 4 0 2.09
Arcus Biosciences 0 1 3 0 2.75

Puma Biotechnology presently has a consensus target price of $69.10, indicating a potential upside of 195.43%. Arcus Biosciences has a consensus target price of $19.75, indicating a potential upside of 97.70%. Given Puma Biotechnology’s higher possible upside, equities research analysts plainly believe Puma Biotechnology is more favorable than Arcus Biosciences.

Valuation & Earnings

This table compares Puma Biotechnology and Arcus Biosciences’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Puma Biotechnology $26.20 million 34.04 -$291.95 million ($7.85) -2.98
Arcus Biosciences N/A N/A N/A N/A N/A

Arcus Biosciences has lower revenue, but higher earnings than Puma Biotechnology.

Institutional & Insider Ownership

91.6% of Puma Biotechnology shares are owned by institutional investors. Comparatively, 39.1% of Arcus Biosciences shares are owned by institutional investors. 21.5% of Puma Biotechnology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Puma Biotechnology beats Arcus Biosciences on 5 of the 9 factors compared between the two stocks.

Puma Biotechnology Company Profile

Puma Biotechnology, Inc., a biopharmaceutical company, focuses on the development and commercialization of products to enhance cancer care in the United States. Its drug candidates include PB272 neratinib (oral) for the treatment of early stage breast cancer, metastatic breast cancer, non-small cell lung cancer, HER2 mutation-positive solid tumors, and HER2-mutated non-amplified breast cancer; and PB272 neratinib (intravenous)). The company also develops PB357, an orally administered agent that is an irreversible tyrosine kinase inhibitor that blocks signal transduction through the epidermal growth factor receptors, HER1, HER2, and HER4. It has a license agreement with Pfizer, Inc. for the development, manufacture, and commercialization of PB272 neratinib (oral), PB272 neratinib (intravenous), PB357, and certain related compounds. Puma Biotechnology, Inc. was founded in 2010 and is headquartered in Los Angeles, California.

Arcus Biosciences Company Profile

Arcus Biosciences, Inc., a clinical-stage biopharmaceutical company, engages in developing and commercializing cancer immunotherapies in the United States. It is developing various products for treating solid tumors, including AB928, an adenosine receptor antagonist that is in Phase I clinical trial; AB680, a CD73 inhibitor; AB122, an anti-PD-1 antibody that is Phase I clinical trial; and AB154, an anti-TIGIT antibody. The company was founded in 2015 and is headquartered in Hayward, California.

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