Arcutis Biotherapeutics (NASDAQ:ARQT) vs. Galecto (NASDAQ:GLTO) Head to Head Survey

Arcutis Biotherapeutics (NASDAQ:ARQTGet Free Report) and Galecto (NASDAQ:GLTOGet Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Institutional and Insider Ownership

14.2% of Galecto shares are held by institutional investors. 9.5% of Arcutis Biotherapeutics shares are held by insiders. Comparatively, 12.1% of Galecto shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Arcutis Biotherapeutics and Galecto’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arcutis Biotherapeutics -204.35% -197.28% -60.67%
Galecto N/A -87.11% -68.68%

Valuation and Earnings

This table compares Arcutis Biotherapeutics and Galecto’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arcutis Biotherapeutics $106.39 million 10.16 -$262.14 million ($2.93) -3.19
Galecto N/A N/A -$38.35 million ($1.14) -0.48

Galecto has lower revenue, but higher earnings than Arcutis Biotherapeutics. Arcutis Biotherapeutics is trading at a lower price-to-earnings ratio than Galecto, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Arcutis Biotherapeutics and Galecto, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arcutis Biotherapeutics 0 2 6 0 2.75
Galecto 0 4 1 0 2.20

Arcutis Biotherapeutics presently has a consensus target price of $25.38, suggesting a potential upside of 171.68%. Galecto has a consensus target price of $4.33, suggesting a potential upside of 696.72%. Given Galecto’s higher probable upside, analysts plainly believe Galecto is more favorable than Arcutis Biotherapeutics.

Risk and Volatility

Arcutis Biotherapeutics has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Galecto has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Summary

Galecto beats Arcutis Biotherapeutics on 9 of the 13 factors compared between the two stocks.

About Arcutis Biotherapeutics

(Get Free Report)

Arcutis Biotherapeutics, Inc., a biopharmaceutical company, focuses on developing and commercializing treatments for dermatological diseases. Its lead product candidate is ARQ-151, a topical roflumilast cream that has completed Phase III clinical trials for the treatment of plaque psoriasis and atopic dermatitis. The company is also developing ARQ-154, a topical ZORYVE for the treatment of scalp and body psoriasis and seborrheic dermatitis; ARQ-252, a selective topical janus kinase type 1 inhibitor for hand eczema and vitiligo; ARQ-255, a topical JAK1 inhibitor for alopecia areata; and ARQ-234, a CD200R fusion protein for the treatment of moderate-to-severe atopic dermatitis. The company was formerly known as Arcutis, Inc. and changed its name to Arcutis Biotherapeutics, Inc. in October 2019. Arcutis Biotherapeutics, Inc. was incorporated in 2016 and is headquartered in Westlake Village, California.

About Galecto

(Get Free Report)

Galecto, Inc., a clinical-stage biotechnology company, develops molecules for the treatment of fibrosis, cancer, inflammation, and other related diseases. The company's lead product candidate is GB2064, which is in Phase IIa for the treatment of myelofibrosis. It also develops GB2064, a selective oral small molecule inhibitor of LOXL2 that is in Phase 2a clinical trial for the treatment of fibrotic diseases, including cancer and myelofibrosis; and GB1211, a selective oral galectin-3 inhibitor that is in Phase IIa for the treatment of cancer, as well as in Phase Ib/IIa for fibrosis. Galecto, Inc. was founded in 2011 and is headquartered in Copenhagen, Denmark.

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