MacroGenics (NASDAQ: MGNX) and AcelRx Pharmaceuticals (NASDAQ:ACRX) are both small-cap bio therapeutic drugs companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Profitability

This table compares MacroGenics and AcelRx Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MacroGenics -1,526.55% -69.31% -58.09%
AcelRx Pharmaceuticals -374.76% N/A -58.74%

Valuation and Earnings

This table compares MacroGenics and AcelRx Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
MacroGenics $91.88 million 7.69 -$58.52 million ($4.49) -4.28
AcelRx Pharmaceuticals $17.36 million 6.00 -$43.15 million ($1.12) -1.85

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

Volatility & Risk

MacroGenics has a beta of 2.78, indicating that its share price is 178% more volatile than the S&P 500. Comparatively, AcelRx Pharmaceuticals has a beta of 2.87, indicating that its share price is 187% more volatile than the S&P 500.

Insider & Institutional Ownership

84.7% of MacroGenics shares are held by institutional investors. Comparatively, 23.1% of AcelRx Pharmaceuticals shares are held by institutional investors. 8.3% of MacroGenics shares are held by insiders. Comparatively, 28.1% of AcelRx Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for MacroGenics and AcelRx Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MacroGenics 0 2 9 0 2.82
AcelRx Pharmaceuticals 0 3 4 0 2.57

MacroGenics presently has a consensus target price of $31.33, suggesting a potential upside of 63.19%. AcelRx Pharmaceuticals has a consensus target price of $6.83, suggesting a potential upside of 230.11%. Given AcelRx Pharmaceuticals’ higher possible upside, analysts clearly believe AcelRx Pharmaceuticals is more favorable than MacroGenics.

Summary

AcelRx Pharmaceuticals beats MacroGenics on 7 of the 13 factors compared between the two stocks.

MacroGenics Company Profile

MacroGenics, Inc. is a clinical-stage biopharmaceutical company focused on discovering and developing monoclonal antibody-based therapeutics for the treatment of cancer, as well as various autoimmune disorders and infectious diseases. The Company develops therapeutic product candidates using its antibody-based technology platforms and also in collaboration with other biopharmaceutical companies. It has a pipeline of product candidates in human clinical testing, primarily as treatments for different types of cancers, which are created using its technology platforms. Its clinical product candidate, margetuximab, has been enhanced using its Fc Optimization platform. The Company is also developing several product candidates targeting B7-H3, a protein in the B7 family of immune regulator proteins. The Company’s product candidates also include enoblituzumab and MGD009, MGC018, MGD006 (flotetuzumab), MGD007, MGD011 (duvortuxizumab), PF-06671008 and MGD010.

AcelRx Pharmaceuticals Company Profile

AcelRx Pharmaceuticals, Inc. is a pharmaceutical company focused on the development and commercialization of therapies for the treatment of moderate-to-severe acute pain. The Company operates through the segment, which includes development and commercialization of product candidates for the treatment of pain. Its lead product candidates include ARX-04, Zalviso, which utilize sublingual sufentanil, delivered through a non-invasive route of administration, and ARX-03. ARX-04 is meant for the treatment of moderate-to-severe acute pain to be administered by a healthcare professional to a patient in medically supervised settings. Zalviso is meant for the management of moderate-to-severe acute pain in hospitalized adult patients. ARX-03 provides mild sedation, anxiety reduction and pain relief for patients undergoing painful procedures in a physician’s office. It also includes ARX-02, which is meant for the treatment of patients who suffer from breakthrough pain (BTP) due to cancer.

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