Financial Survey: Emmaus Life Sciences (OTCMKTS:EMMA) and Arcus Biosciences (NYSE:RCUS)

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

Volatility and Risk

Arcus Biosciences has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Emmaus Life Sciences has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Arcus Biosciences and Emmaus Life Sciences, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcus Biosciences	0	1	8	0	2.89
Emmaus Life Sciences	0	0	0	0	N/A

Arcus Biosciences presently has a consensus target price of $38.11, suggesting a potential upside of 146.20%. Given Arcus Biosciences’ higher probable upside, equities research analysts plainly believe Arcus Biosciences is more favorable than Emmaus Life Sciences.

Insider & Institutional Ownership

92.9% of Arcus Biosciences shares are held by institutional investors. Comparatively, 7.4% of Emmaus Life Sciences shares are held by institutional investors. 12.3% of Arcus Biosciences shares are held by insiders. Comparatively, 35.0% of Emmaus Life Sciences 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.

Earnings & Valuation

This table compares Arcus Biosciences and Emmaus Life Sciences’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arcus Biosciences	$117.00 million	11.78	-$307.00 million	($3.11)	-4.87
Emmaus Life Sciences	$29.60 million	0.15	-$3.73 million	($0.09)	-0.79

Emmaus Life Sciences has lower revenue, but higher earnings than Arcus Biosciences. Arcus Biosciences is trading at a lower price-to-earnings ratio than Emmaus Life Sciences, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Arcus Biosciences and Emmaus Life Sciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arcus Biosciences	-97.47%	-40.98%	-19.25%
Emmaus Life Sciences	-12.61%	N/A	-7.63%

Summary

Emmaus Life Sciences beats Arcus Biosciences on 7 of the 12 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 Emmaus Life Sciences

Emmaus Life Sciences, Inc., a commercial-stage biopharmaceutical company, discovers, develops, markets, and sells treatments and therapies primarily for rare and orphan diseases in the United States and internationally. The company's lead candidate is Endari, an L-glutamine oral powder to reduce the acute complications of sickle cell disease in adult and pediatric patients five years of age and older. It has a collaboration agreement with Kainos Medicine, Inc. for the preclinical development of Kainos' patented IRAK4 inhibitor (KM10544) as an anti-cancer drug. The company was formerly known as Emmaus Holdings, Inc. and changed its name to Emmaus Life Sciences, Inc. in September 2011. The company was founded in 2000 and is headquartered in Torrance, California.