Critical Analysis: GlycoMimetics (NASDAQ:GLYC) vs. Arbutus Biopharma (NASDAQ:ABUS)

GlycoMimetics (NASDAQ:GLYC) and Arbutus Biopharma (NASDAQ:ABUS) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and target prices for GlycoMimetics and Arbutus Biopharma, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GlycoMimetics 0 3 3 0 2.50
Arbutus Biopharma 1 1 1 0 2.00

GlycoMimetics presently has a consensus target price of $9.25, suggesting a potential upside of 89.16%. Arbutus Biopharma has a consensus target price of $5.50, suggesting a potential upside of 79.15%. Given GlycoMimetics’ stronger consensus rating and higher possible upside, analysts clearly believe GlycoMimetics is more favorable than Arbutus Biopharma.

Risk and Volatility

GlycoMimetics has a beta of 2.58, meaning that its share price is 158% more volatile than the S&P 500. Comparatively, Arbutus Biopharma has a beta of 1.99, meaning that its share price is 99% more volatile than the S&P 500.

Earnings & Valuation

This table compares GlycoMimetics and Arbutus Biopharma’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GlycoMimetics N/A N/A -$48.27 million ($1.18) -4.14
Arbutus Biopharma $5.90 million 32.32 -$57.06 million ($1.02) -3.01

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

Profitability

This table compares GlycoMimetics and Arbutus Biopharma’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GlycoMimetics N/A -30.69% -28.82%
Arbutus Biopharma -2,416.39% -298.87% -43.43%

Institutional & Insider Ownership

96.1% of GlycoMimetics shares are held by institutional investors. Comparatively, 30.8% of Arbutus Biopharma shares are held by institutional investors. 26.8% of GlycoMimetics shares are held by insiders. Comparatively, 9.6% of Arbutus Biopharma shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

GlycoMimetics beats Arbutus Biopharma on 10 of the 13 factors compared between the two stocks.

GlycoMimetics Company Profile

GlycoMimetics, Inc., a clinical-stage biotechnology company, focuses on the discovery and development of novel glycomimetic drugs to address unmet medical needs resulting from diseases in the United States. The company's advanced drug candidate, rivipansel, is a pan-selectin antagonist, which is developed for the treatment of vaso-occlusive crisis in sickle cell disease and is in a Phase III clinical trial, conducted by its strategic collaboration with Pfizer Inc. It is also developing uproleselan, an E-selectin antagonist that is evaluated in a Phase I/II clinical trial as a potential treatment for acute myeloid leukemia (AML), as well as Phase III trial to treat relapsed/refractory AML. In addition, the company offers GMI-1359 that has completed Phase I clinical trial to target E-selectin and a chemokine receptor for various tumor types. Further, it is developing various other programs, including GMI-1687, an antagonist of E-selectin; and Galectin-3, a carbohydrate-binding protein. The company has a cooperative research and development agreement with the National Cancer Institute. GlycoMimetics, Inc. was founded in 2003 and is headquartered in Rockville, Maryland.

Arbutus Biopharma Company Profile

Arbutus Biopharma Corporation, a biopharmaceutical company, engages in the discovery, development, and commercialization of a cure for patients suffering from chronic Hepatitis B virus (HBV) infection in Canada and the United States. Its HBV product pipeline consists of AB-506, a capsid inhibitor that has shown improved potency and pharmacokinetics over its first generation capsid inhibitor; and AB-423, which is in pre-clinical studies. The company also develops RNAi drugs, which utilize the RNA interference pathway, allows for a novel approach to treating disease. Its RNAi HBV candidates are designed to reduce hepatitis B surface antigen expression in patients chronically infected with HBV. The company develops AB-729, a second generation RNAi therapeutic targeted to hepatocytes; HBV RNA destabilizer AB-452, an orally administered agent, in pre-clinical studies in destabilizing HBV RNA, which leads to RNA degradation and to reduction in HBsAg levels. In addition, it engages conducting a Phase 1a/1b clinical trial and several pre-clinical and investigational new drug-enabling studies to evaluate proprietary HBV therapeutic agents, together with SOC therapies, and in combination with each other. The company has strategic alliance, licensing, and research collaboration agreements with Marqibo; Gritstone Oncology, Inc.; Acuitas Therapeutics Inc.; Alexion Pharmaceuticals Inc.; Monsanto Company; Marina Biotech, Inc.; and Arcturus Therapeutics, Inc. The company was formerly known as Tekmira Pharmaceuticals Corporation and changed its name to Arbutus Biopharma Corporation in July 2015. Arbutus Biopharma Corporation is headquartered in Burnaby, Canada.

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