Financial Contrast: Aclaris Therapeutics (NASDAQ:ACRS) vs. Upstream Bio (NASDAQ:UPB)

Aclaris Therapeutics (NASDAQ:ACRS) and Upstream Bio (NASDAQ:UPB) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Profitability

This table compares Aclaris Therapeutics and Upstream Bio’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%
Upstream Bio	-4,955.67%	-48.40%	-46.57%

Valuation and Earnings

This table compares Aclaris Therapeutics and Upstream Bio”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aclaris Therapeutics	$7.83 million	91.96	-$64.92 million	($0.58)	-8.88
Upstream Bio	$2.85 million	103.01	-$143.44 million	($2.90)	-1.85

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Aclaris Therapeutics and Upstream Bio, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aclaris Therapeutics	1	0	5	3	3.11
Upstream Bio	1	2	4	0	2.43

Aclaris Therapeutics currently has a consensus target price of $11.33, suggesting a potential upside of 120.06%. Upstream Bio has a consensus target price of $29.67, suggesting a potential upside of 453.48%. Given Upstream Bio’s higher probable upside, analysts plainly believe Upstream Bio is more favorable than Aclaris Therapeutics.

Institutional and Insider Ownership

98.3% of Aclaris Therapeutics shares are owned by institutional investors. 4.8% of Aclaris Therapeutics shares are owned by insiders. Comparatively, 16.5% of Upstream Bio shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Aclaris Therapeutics has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Upstream Bio has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.

Summary

Aclaris Therapeutics beats Upstream Bio on 9 of the 15 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 Upstream Bio

Upstream Bio, Inc., a clinical-stage biotechnology company, develops treatments for inflammatory diseases that focuses on severe respiratory disorders. It develops verekitug, a monoclonal antibody that targets and inhibits the thymic stromal lymphopoietin receptor. The company also develops therapies to treat severe asthma, chronic rhinosinusitis with nasal polyps, and chronic obstructive pulmonary disease. Upstream Bio, Inc. was incorporated in 2021 and is based in Waltham, Massachusetts.