Arcus Biosciences (NYSE:RCUS – Get Free Report) and Kineta (NASDAQ:KA – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.
Risk and Volatility
Arcus Biosciences has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Kineta has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for Arcus Biosciences and Kineta, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arcus Biosciences | 0 | 0 | 7 | 1 | 3.13 |
| Kineta | 0 | 0 | 1 | 0 | 3.00 |
Profitability
This table compares Arcus Biosciences and Kineta’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Arcus Biosciences | -100.81% | -42.86% | -20.90% |
| Kineta | N/A | -1,044.95% | -336.46% |
Earnings and Valuation
This table compares Arcus Biosciences and Kineta”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arcus Biosciences | $117.00 million | 13.07 | -$307.00 million | ($3.11) | -5.38 |
| Kineta | $5.44 million | 1.87 | -$14.10 million | ($1.50) | -0.55 |
Kineta has lower revenue, but higher earnings than Arcus Biosciences. Arcus Biosciences is trading at a lower price-to-earnings ratio than Kineta, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
92.9% of Arcus Biosciences shares are held by institutional investors. Comparatively, 30.3% of Kineta shares are held by institutional investors. 12.3% of Arcus Biosciences shares are held by insiders. Comparatively, 23.7% of Kineta shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Arcus Biosciences beats Kineta on 9 of the 15 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 Kineta
Kineta, Inc. is a clinical-stage biotechnology company with a focus on developing immunotherapies that transform patients' lives. It focuses on developing potentially differentiated immunotherapies that address the challenges with current cancer therapy. The company's immuno-oncology pipeline includes KVA12123, a VISTA blocking immunotherapy in development as a twice weekly monoclonal antibody (mAb) infusion drug. KVA12123 is being evaluated in a Phase 1/2 clinical trial as a monotherapy and in combination with pembrolizumab in patients with advanced solid tumors, including non-small cell lung, ovarian, renal cell carcinoma, head and neck, renal cell, and colorectal cancers. It is also developing anti-CD27 agonist mAb immunotherapy to address the problem of exhausted T cells. The company has collaboration and license agreements with MSD International Business GmbH, Genentech, Inc., FAIR Therapeutics B.V., and GigaGen, Inc. Kineta, Inc. is headquartered in Seattle, Washington.
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