Comparing Arcus Biosciences (NYSE:RCUS) & Pharming Group (NASDAQ:PHAR)

Pharming Group (NASDAQ:PHAR) and Arcus Biosciences (NYSE:RCUS) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Profitability

This table compares Pharming Group and Arcus Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pharming Group	-2.19%	-3.31%	-1.78%
Arcus Biosciences	-109.56%	-55.96%	-25.73%

Insider and Institutional Ownership

0.0% of Pharming Group shares are owned by institutional investors. Comparatively, 92.9% of Arcus Biosciences shares are owned by institutional investors. 2.1% of Pharming Group shares are owned by company insiders. Comparatively, 9.6% of Arcus Biosciences shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Pharming Group has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500. Comparatively, Arcus Biosciences has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Earnings & Valuation

This table compares Pharming Group and Arcus Biosciences”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pharming Group	$297.20 million	3.41	-$11.84 million	($0.13)	-113.85
Arcus Biosciences	$258.00 million	5.10	-$283.00 million	($3.17)	-3.90

Pharming Group has higher revenue and earnings than Arcus Biosciences. Pharming Group is trading at a lower price-to-earnings ratio than Arcus Biosciences, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Pharming Group and Arcus Biosciences, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pharming Group	0	0	3	0	3.00
Arcus Biosciences	0	2	6	0	2.75

Pharming Group currently has a consensus target price of $30.00, suggesting a potential upside of 102.70%. Arcus Biosciences has a consensus target price of $21.14, suggesting a potential upside of 70.85%. Given Pharming Group’s stronger consensus rating and higher possible upside, research analysts plainly believe Pharming Group is more favorable than Arcus Biosciences.

Summary

Pharming Group beats Arcus Biosciences on 8 of the 14 factors compared between the two stocks.

About Pharming Group

Pharming Group N.V., a biopharmaceutical company, develops and commercializes protein replacement therapies and precision medicines for the treatment of rare diseases in the United States, Europe, and internationally. The company offers RUCONEST, a recombinant C1 esterase inhibitor for the treatment of acute attacks in adult and adolescent patients with acute hereditary angioedema (HAE); and Joenja (leniolisib), an oral small molecule PI3K? inhibitor for the treatment of activated phosphoinositide 3-kinase delta syndrome. It also develops OTL-105, an investigational ex-vivo autologous hematopoietic stem cell gene therapy for the treatment of HAE. The company has a development collaboration and license agreement with Novartis; and a strategic collaboration agreement with Orchard Therapeutics plc for research, development, manufacturing, and commercialization of OTL-105. Pharming Group N.V. was incorporated in 1988 and is headquartered in Leiden, the Netherlands.

About Arcus Biosciences

Arcus Biosciences, Inc., a clinical-stage biopharmaceutical company, develops and commercializes cancer therapies in the United States. The company's pipeline products include Domvanalimab, an anti-TIGIT antibody, which is in Phase 2 and Phase 3 clinical trial; and AB308, an investigational anti-TIGIT monoclonal antibody, which is in Phase 1b clinical trial to study people with advanced solid and hematologic malignancies. It also develops Etrumadenant, a dual A2a/A2b adenosine receptor antagonist, which is in Phase 2 clinical trial; Quemliclustat, a small-molecule CD73 inhibitor, which is Phase 1b and Phase 2 clinical trial; Zimberelimab, an anti-PD-1 antibody, which is in Phase 2 clinical trial for metastatic cell lung cancer and monotherapy; and AB521, an oral and small-molecule inhibitor of HIF-2a, which is in Phase 1 clinical trial for the treatment of Von Hippel-Lindau disease. In addition, the company's preclinical pipeline products include AB598, a CD39 antibody; and AB801, a small molecule Axl inhibitor. It has a clinical collaboration with AstraZeneca to evaluate domvanalimab in combination with durvalumab in a registrational phase 3 clinical trial in patients with unresectable Stage 3 NSCLC; and BVF Partners L.P. to support the discovery and development of compounds for the treatment of inflammatory diseases. Arcus Biosciences, Inc. was incorporated in 2015 and is headquartered in Hayward, California.