Longboard Pharmaceuticals (NASDAQ:LBPH) versus Acerus Pharmaceuticals (OTCMKTS:TRLPF) Head-To-Head Survey

Longboard Pharmaceuticals (NASDAQ:LBPH) and Acerus Pharmaceuticals (OTCMKTS:TRLPF) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Institutional and Insider Ownership

63.3% of Longboard Pharmaceuticals shares are owned by institutional investors. Comparatively, 0.0% of Acerus Pharmaceuticals shares are owned by institutional investors. 4.6% of Longboard Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Longboard Pharmaceuticals and Acerus Pharmaceuticals’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Longboard Pharmaceuticals	N/A	N/A	-$54.42 million	($2.24)	-15.26
Acerus Pharmaceuticals	$7.38 million	7.71	-$18.79 million	($0.08)	-2.75

Acerus Pharmaceuticals has higher revenue and earnings than Longboard Pharmaceuticals. Longboard Pharmaceuticals is trading at a lower price-to-earnings ratio than Acerus Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Longboard Pharmaceuticals and Acerus Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Longboard Pharmaceuticals	0	0	8	0	3.00
Acerus Pharmaceuticals	0	0	0	0	N/A

Longboard Pharmaceuticals currently has a consensus target price of $57.13, suggesting a potential upside of 67.08%. Given Longboard Pharmaceuticals’ higher probable upside, equities analysts clearly believe Longboard Pharmaceuticals is more favorable than Acerus Pharmaceuticals.

Profitability

This table compares Longboard Pharmaceuticals and Acerus Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Longboard Pharmaceuticals	N/A	-47.76%	-44.42%
Acerus Pharmaceuticals	-254.66%	-346.72%	-94.54%

Volatility & Risk

Longboard Pharmaceuticals has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Acerus Pharmaceuticals has a beta of 2.6, meaning that its stock price is 160% more volatile than the S&P 500.

Summary

Longboard Pharmaceuticals beats Acerus Pharmaceuticals on 7 of the 12 factors compared between the two stocks.

About Longboard Pharmaceuticals

Longboard Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on developing novel and transformative medicines for neurological diseases. The company develops bexicaserin (LP352), which has completed Phase 1b/2a clinical trial for the treatment of seizures associated with developmental and epileptic encephalopathies. It also develops LP659, an S1P receptor modulator for the treatment of neurological diseases. The company was formerly known as Arena Neuroscience, Inc. and changed its name to Longboard Pharmaceuticals, Inc. in October 2020. Longboard Pharmaceuticals, Inc. was incorporated in 2020 and is based in La Jolla, California.

About Acerus Pharmaceuticals

Acerus Pharmaceuticals Corporation, a specialty pharmaceutical company, focuses on the development, manufacture, marketing, and distribution of pharmaceutical products for men's and women's health. The company offers Natesto, a nasal gel for testosterone replacement therapy in adult males diagnosed with hypogonadism; Estrace, an oral tablet for the symptomatic relief of menopausal symptoms; and UriVarx, a natural health product that helps reduce symptoms of hyperactive bladder, such as daytime urinary frequency, urgency, and nocturia. It also engages in developing Lidbree, a short acting lidocaine formulation delivered through a proprietary device into the vaginal mucosal tissue; Stendra, a PDE5 inhibitor for the treatment of erectile dysfunction; Elegant vaginal moisturizer, which provides comfort to women suffering from vaginal dryness; and Elegant pH, a pH balanced vaginal product; Gynoflor, an ultra-low dose vaginal estrogen combined with a probiotic for the treatment of vaginal atrophy, restoration of vaginal flora, and treatment of certain vaginal infections; and Tefina, a clinical stage product for women with female sexual dysfunction. Acerus Pharmaceuticals Corporation sells products through its salesforce in Canada; and through a network of licensed distributors in the United States and internationally. The company was formerly known as Trimel Pharmaceuticals Corporation and changed its name to Acerus Pharmaceuticals Corporation in September 2015. Acerus Pharmaceuticals Corporation was founded in 2008 and is headquartered in Mississauga, Canada.