Aclaris Therapeutics (NASDAQ:ACRS – Get Free Report) and Equillium (NASDAQ:EQ – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.
Institutional and Insider Ownership
98.3% of Aclaris Therapeutics shares are owned by institutional investors. Comparatively, 27.0% of Equillium shares are owned by institutional investors. 4.8% of Aclaris Therapeutics shares are owned by insiders. Comparatively, 17.8% of Equillium shares are owned 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.
Earnings & Valuation
This table compares Aclaris Therapeutics and Equillium”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aclaris Therapeutics | $8.22 million | 64.14 | -$64.92 million | ($0.58) | -6.50 |
| Equillium | N/A | N/A | -$22.40 million | ($0.20) | -6.90 |
Equillium has lower revenue, but higher earnings than Aclaris Therapeutics. Equillium is trading at a lower price-to-earnings ratio than Aclaris Therapeutics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Aclaris Therapeutics and Equillium’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aclaris Therapeutics | -921.50% | -61.65% | -42.41% |
| Equillium | N/A | -41.15% | -38.29% |
Analyst Ratings
This is a summary of recent ratings for Aclaris Therapeutics and Equillium, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aclaris Therapeutics | 1 | 0 | 5 | 3 | 3.11 |
| Equillium | 1 | 1 | 7 | 2 | 2.91 |
Aclaris Therapeutics currently has a consensus price target of $11.33, indicating a potential upside of 200.62%. Equillium has a consensus price target of $7.57, indicating a potential upside of 448.65%. Given Equillium’s higher possible upside, analysts clearly believe Equillium is more favorable than Aclaris Therapeutics.
Risk & Volatility
Aclaris Therapeutics has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Equillium has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500.
Summary
Equillium beats Aclaris Therapeutics on 9 of the 14 factors compared between the two stocks.
About Aclaris Therapeutics
Aclaris Therapeutics, Inc. a clinical-stage biopharmaceutical company, engages in the development of novel drug candidates for immune-inflammatory diseases in the United States. The company operates through two segments, Therapeutics and Contract Research. The Therapeutics segment is involved in identifying and developing therapies to address significant unmet needs for immuno-inflammatory diseases. The Contract Research segment provides laboratory services. It develops Zunsemetinib (ATI-450), an MK2 inhibitor which is under Phase 1b/2 trials for the treatment of metastatic breast and pancreatic cancer; ATI-1777, a soft JAK 1/3 inhibitor, completed Phase 2b trails for the treatment of moderate to severe atopic dermatitis and other dermatologic conditions; and ATI-2138, an oral covalent inhibitor of ITK and JAK3 inhibitor under Phase 1 trials as a treatment for T cell-mediated autoimmune diseases. The company was incorporated in 2012 and is headquartered in Wayne, Pennsylvania.
About Equillium
Equillium, Inc., a clinical-stage biotechnology company, develops and sells products to treat severe autoimmune and inflammatory, or immuno-inflammatory disorders with unmet medical need. The company's lead product candidate is itolizumab (EQ001), a first-in-class monoclonal antibody that targets the immune checkpoint receptor CD6, which is in Phase III clinical trials for the treatment of acute graft-versus-host disease; completed Phase I clinical trial for the treatment of ulcerative colitis; and Phase I clinical trial for the treatment of lupus nephritis. It also develops EQ101 completed phase 1/2 for treatment of cutaneous T cell lymphoma and alopecia areata; and EQ302 to treat gastrointestinal indications. In addition, it serves dermatology, gastroenterology, rheumatology, hematology, transplant science, oncology, and pulmonology area. The company was formerly known as Attenuate Biopharmaceuticals, Inc. and changed its name to Equillium, Inc. in May 2017. Equillium, Inc. was incorporated in 2017 and is headquartered in La Jolla, California.
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