Head-To-Head Review: Arch Therapeutics (OTCMKTS:ARTH) vs. Beta Bionics (NASDAQ:BBNX)

Beta Bionics (NASDAQ:BBNX) and Arch Therapeutics (OTCMKTS:ARTH) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for Beta Bionics and Arch Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beta Bionics	0	3	5	1	2.78
Arch Therapeutics	0	0	0	0	0.00

Beta Bionics currently has a consensus price target of $24.83, indicating a potential upside of 58.27%. Given Beta Bionics’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Beta Bionics is more favorable than Arch Therapeutics.

Profitability

This table compares Beta Bionics and Arch Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beta Bionics	N/A	N/A	N/A
Arch Therapeutics	-8,257.70%	N/A	-730.22%

Valuation and Earnings

This table compares Beta Bionics and Arch Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beta Bionics	$53.03 million	12.68	N/A	N/A	N/A
Arch Therapeutics	$80,000.00	13.93	-$6.98 million	N/A	N/A

Beta Bionics has higher revenue and earnings than Arch Therapeutics.

Institutional and Insider Ownership

6.9% of Arch Therapeutics shares are held by institutional investors. 4.5% of Arch Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Beta Bionics beats Arch Therapeutics on 7 of the 10 factors compared between the two stocks.

About Beta Bionics

Beta Bionics, Inc. is a commercial-stage medical device company. It engages in the design, development, and commercialization of solutions for insulin-requiring people with diabetes. The company was founded by Edward R. Damiano on October 21, 2015 and is headquartered in Irvine, CA.

About Arch Therapeutics

Arch Therapeutics, Inc., together with its subsidiaries, operates as a biotechnology company in the United States. It develops and markets products based on its AC5 self-assembling technology platform to stop bleeding and control leaking, as well as manages wounds during surgery, trauma, and interventional care or from disease. The company's flagship products include AC5 advanced wound system and AC5 topical hemostat, which are intended for skin applications, such as management of complicated chronic wounds or acute surgical wounds. It is also involved in the development of AC5-G for gastrointestinal endoscopic procedures, and AC5-V and AC5 surgical hemostat for hemostasis inside the body. The company was founded in 2006 and is based in Framingham, Massachusetts.