Acrivon Therapeutics (NASDAQ:ACRV) & Surrozen (NASDAQ:SRZN) Critical Review

Surrozen (NASDAQ:SRZN) and Acrivon Therapeutics (NASDAQ:ACRV) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Risk and Volatility

Surrozen has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Acrivon Therapeutics has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Surrozen and Acrivon Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surrozen	2	0	3	1	2.50
Acrivon Therapeutics	1	0	4	0	2.60

Surrozen currently has a consensus price target of $42.00, suggesting a potential upside of 112.01%. Acrivon Therapeutics has a consensus price target of $11.67, suggesting a potential upside of 647.86%. Given Acrivon Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Acrivon Therapeutics is more favorable than Surrozen.

Profitability

This table compares Surrozen and Acrivon Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Surrozen	-4,810.50%	N/A	-154.08%
Acrivon Therapeutics	N/A	-64.43%	-57.08%

Insider and Institutional Ownership

66.6% of Surrozen shares are owned by institutional investors. Comparatively, 71.6% of Acrivon Therapeutics shares are owned by institutional investors. 31.7% of Surrozen shares are owned by insiders. Comparatively, 10.5% of Acrivon Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Surrozen and Acrivon Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surrozen	$3.48 million	66.09	-$242.03 million	($37.59)	-0.53
Acrivon Therapeutics	N/A	N/A	-$77.90 million	($2.00)	-0.78

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

Summary

Acrivon Therapeutics beats Surrozen on 9 of the 14 factors compared between the two stocks.

About Surrozen

Surrozen, Inc., a clinical stage biotechnology company, discovers and develops drug candidates to selectively modulate the Wnt pathway for tissue repair. The company is developing antibody-based therapeutics which targets various disease areas, including diseases of the intestine, liver, retina, cornea, lung, kidney, cochlea, skin, pancreas, and central nervous system. Its products in pipeline include SZN-043, a hepatocyte-specific R-spondin mimetic bispecific fusion protein, which is in Phase 1b clinical trial for the treatment of severe liver diseases, including alcohol-associated hepatitis. The company develops SZN-413, a Fzd4 targeted bi-specific antibody for the treatment of retinal vascular associated diseases. Surrozen, Inc. has collaboration and license agreement with Boehringer Ingelheim International GmbH to research, develop, and commercialize Fzd4 bi-specific antibodies. Surrozen, Inc. is based in South San Francisco, California.

About Acrivon Therapeutics

Acrivon Therapeutics, Inc., a clinical stage biopharmaceutical company, engages in developing oncology medicines for the patients whose tumors are predicted to be sensitive to each specific medicine by utilizing its proteomics-based patient responder identification platform. The company's Acrivon Predictive Precision Proteomics, a precision medicine platform enables the creation of drug specific proprietary OncoSignature companion diagnostics that are used to identify the patients to benefit from its drug candidates. Its lead clinical candidate is ACR-368, a selective small molecule inhibitor targeting CHK1 and CHK2, which is in Phase II clinical trial across various tumor types, including platinum-resistant ovarian, endometrial, and bladder cancer. The company is also developing its preclinical stage pipeline programs targeting critical nodes in the DNA damage response, or DDR, pathways; and ACR-2316, a dual WEE1/PKMYT1 inhibitor. Acrivon Therapeutics, Inc. was incorporated in 2018 and is based in Watertown, Massachusetts.