Critical Comparison: Acer Therapeutics (ACER) and Cytokinetics (CYTK)

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

Institutional & Insider Ownership

0.1% of Acer Therapeutics shares are held by institutional investors. Comparatively, 74.6% of Cytokinetics shares are held by institutional investors. 6.9% of Acer Therapeutics shares are held by insiders. Comparatively, 7.2% of Cytokinetics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Acer Therapeutics N/A -108.02% -88.85%
Cytokinetics -172.27% -62.64% -29.08%

Risk & Volatility

Acer Therapeutics has a beta of 2.24, suggesting that its share price is 124% more volatile than the S&P 500. Comparatively, Cytokinetics has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Acer Therapeutics and Cytokinetics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Acer Therapeutics 0 0 1 0 3.00
Cytokinetics 0 1 9 0 2.90

Acer Therapeutics presently has a consensus price target of $50.00, indicating a potential upside of 158.53%. Cytokinetics has a consensus price target of $18.20, indicating a potential upside of 87.63%. Given Acer Therapeutics’ stronger consensus rating and higher probable upside, equities analysts clearly believe Acer Therapeutics is more favorable than Cytokinetics.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Acer Therapeutics $2.90 million 49.15 -$7.97 million ($5.75) -3.36
Cytokinetics $106.41 million 4.91 $16.45 million ($1.66) -5.84

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

Summary

Cytokinetics beats Acer Therapeutics on 8 of the 13 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 Cytokinetics

Cytokinetics, Incorporated is a late-stage biopharmaceutical company. The Company is focused on discovering, developing and commercializing first-in-class muscle activators as potential treatments for debilitating diseases in which muscle performance is compromised and/or declining. It is focused on the discovery and development of small molecule therapeutics that modulate muscle function for the treatment of serious diseases and medical conditions. Its drug candidates, which are in clinical development include tirasemtiv, CK-2127107 and omecamtiv mecarbil. Its tirasemtiv and CK-2127107 are skeletal muscle troponin activators. It is developing tirasemtiv drug candidate for the treatment of Amyotrophic lateral sclerosis (ALS). The Company is developing CK-2127107 for the potential treatment of spinal muscular atrophy, chronic obstructive pulmonary disease and ALS. The Omecamtiv mecarbil is a cardiac muscle myosin activator, which is being evaluated for the treatment of heart failure.

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