Replimune Group (NASDAQ:REPL) & Arcus Biosciences (NYSE:RCUS) Financial Comparison

Arcus Biosciences (NYSE:RCUS) and Replimune Group (NASDAQ:REPL) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Arcus Biosciences and Replimune Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arcus Biosciences	$247.00 million	15.54	-$353.00 million	($3.90)	-7.73
Replimune Group	N/A	N/A	-$313.94 million	($3.15)	-4.69

Replimune Group has lower revenue, but higher earnings than Arcus Biosciences. Arcus Biosciences is trading at a lower price-to-earnings ratio than Replimune Group, 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, 92.5% of Replimune Group shares are held by institutional investors. 7.6% of Arcus Biosciences shares are held by insiders. Comparatively, 5.4% of Replimune Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Arcus Biosciences has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Replimune Group has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Profitability

This table compares Arcus Biosciences and Replimune Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arcus Biosciences	-393.16%	-89.54%	-45.61%
Replimune Group	N/A	-159.32%	-90.84%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Arcus Biosciences and Replimune Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcus Biosciences	1	3	8	0	2.58
Replimune Group	2	1	6	1	2.60

Arcus Biosciences presently has a consensus price target of $37.80, suggesting a potential upside of 25.41%. Replimune Group has a consensus price target of $11.86, suggesting a potential downside of 19.72%. Given Arcus Biosciences’ higher possible upside, analysts plainly believe Arcus Biosciences is more favorable than Replimune Group.

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 Replimune Group

Replimune Group, Inc., a clinical-stage biotechnology company, focuses on the development of oncolytic immunotherapies to treat cancer. The company's proprietary tumor-directed oncolytic immunotherapy product candidates are designed and intended to activate the immune system against cancer. Its lead product candidate is RP1, a selectively replicating version of HSV-1 that expresses GALV-GP R(-) and human GM-CSF, which is in Phase I/II clinical trials for a range of solid tumors; and that has completed Phase II clinical trials for treating cutaneous squamous cell carcinoma. The company is also developing RP2, which is in Phase I clinical trials to express an anti-CTLA-4 antibody-like protein to block the inhibition of the immune response otherwise caused by CTLA-4; and RP3 that is in Phase I clinical trial to express immune-activating proteins that stimulate T cells. Replimune Group, Inc. was founded in 2015 and is headquartered in Woburn, Massachusetts.