Acer Therapeutics (NASDAQ: ACER) and XBiotech (NASDAQ:XBIT) are both small-cap healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Profitability

This table compares Acer Therapeutics and XBiotech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Acer Therapeutics N/A -141.18% -107.94%
XBiotech N/A -67.91% -62.52%

Volatility & Risk

Acer Therapeutics has a beta of 2.31, suggesting that its stock price is 131% more volatile than the S&P 500. Comparatively, XBiotech has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Acer Therapeutics and XBiotech, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Acer Therapeutics 0 3 0 0 2.00
XBiotech 0 1 1 0 2.50

XBiotech has a consensus target price of $13.00, suggesting a potential upside of 194.78%. Given XBiotech’s stronger consensus rating and higher probable upside, analysts clearly believe XBiotech is more favorable than Acer Therapeutics.

Earnings and Valuation

This table compares Acer Therapeutics and XBiotech’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Acer Therapeutics N/A N/A N/A ($7.56) -2.51
XBiotech N/A N/A -$47.92 million ($1.63) -2.71

XBiotech is trading at a lower price-to-earnings ratio than Acer Therapeutics, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

36.7% of Acer Therapeutics shares are held by institutional investors. Comparatively, 10.6% of XBiotech shares are held by institutional investors. 6.9% of Acer Therapeutics shares are held by company insiders. Comparatively, 35.7% of XBiotech shares are held 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

XBiotech beats Acer Therapeutics on 7 of the 9 factors compared between the two stocks.

About Acer Therapeutics

Acer Therapeutics Inc., formerly Opexa Therapeutics, Inc., is a pharmaceutical company. The Company is engaged in acquires, develops and intends to commercialize therapies for patients with serious rare diseases with critical unmet medical need. Its late-stage clinical pipeline includes Edsivo (celiprolol) and ACER-001. The Company is developing Edsivo for the treatment of vascular Ehlers-Danlos Syndrome (vEDS) in the United States. The Company is developing ACER-001, a pharmacologic treatment option for the treatment of Maple Syrup Urine Disease (MSUD). ACER-001 is an immediate-release formulation of sodium phenylbutyrate (NaPB) developed using a microencapsulation process. The Company is also developing ACER-001 for the treatment of Urea Cycle Disorders (UCD).

About XBiotech

XBiotech Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in discovering and developing True Human monoclonal antibodies for treating a range of different diseases. It focuses on its lead product candidate, Xilonix (MABp1), which is derived from a natural human immune response. The Company has also developed a True Human monoclonal antibody discovery platform and manufacturing system. Xilonix is a therapeutic antibody, which specifically neutralizes interleukin-1 alpha (IL-1a). Its pipeline includes various human antibodies for treating diseases, such as cancer, vascular disease, inflammatory skin disease and diabetes. The Company has completed a Phase III study in Europe for the treatment of symptomatic colorectal cancer. It also investigated its lead product candidate in clinical trials for other inflammatory conditions, including vascular disease, type II diabetes, acne, psoriasis, pyoderma gangrenosum (PG) and hidradenitis suppurativa (HS).

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