Nuvation Bio (NYSE:NUVB – Get Free Report) and Arcus Biosciences (NYSE:RCUS – Get Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.
Earnings and Valuation
This table compares Nuvation Bio and Arcus Biosciences”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nuvation Bio | $7.87 million | 100.25 | -$75.80 million | ($2.26) | -1.04 |
| Arcus Biosciences | $258.00 million | 3.98 | -$307.00 million | ($3.10) | -3.15 |
Nuvation Bio has higher earnings, but lower revenue than Arcus Biosciences. Arcus Biosciences is trading at a lower price-to-earnings ratio than Nuvation Bio, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nuvation Bio | 0 | 0 | 6 | 0 | 3.00 |
| Arcus Biosciences | 0 | 1 | 8 | 1 | 3.00 |
Nuvation Bio currently has a consensus price target of $8.33, indicating a potential upside of 255.37%. Arcus Biosciences has a consensus price target of $30.25, indicating a potential upside of 210.00%. Given Nuvation Bio’s higher possible upside, research analysts clearly believe Nuvation Bio is more favorable than Arcus Biosciences.
Profitability
This table compares Nuvation Bio and Arcus Biosciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nuvation Bio | N/A | -21.89% | -17.86% |
| Arcus Biosciences | -102.66% | -45.59% | -22.38% |
Risk and Volatility
Nuvation Bio has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, Arcus Biosciences has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.
Insider & Institutional Ownership
61.7% of Nuvation Bio shares are owned by institutional investors. Comparatively, 92.9% of Arcus Biosciences shares are owned by institutional investors. 5.1% of Nuvation Bio shares are owned by company insiders. Comparatively, 12.3% of Arcus Biosciences shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Nuvation Bio beats Arcus Biosciences on 9 of the 14 factors compared between the two stocks.
About Nuvation Bio
Nuvation Bio Inc., a clinical-stage biopharmaceutical company, focuses on the development of therapeutic candidates for oncology. The company's lead product candidate is NUV-868, a BD2 selective oral small molecule BET inhibitor that epigenetically regulates proteins that control tumor growth and differentiation, including oncogenes comprising c-myc; NUV-1156, an AR binder Xtandi that address advanced stage prostate cancers with the potential to move into earlier lines typically treated with surgical prostatectomy; and drug-drug conjugate (DDC) platform which leverages a novel therapeutic approach within the drug-conjugate class of anti-cancer therapies to deliver anti-cancer therapeutics to cancer cells, as well as NUV-1176, a PARP inhibitor to address ER+ breast and ovarian cancer. The company was founded in 2018 and is headquartered in New York, New York.
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.
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