Comparing Allakos (NASDAQ:ALLK) and Acerus Pharmaceuticals (OTCMKTS:TRLPF)

Allakos (NASDAQ:ALLK) and Acerus Pharmaceuticals (OTCMKTS:TRLPF) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Profitability

This table compares Allakos and Acerus Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allakos	N/A	-140.87%	-86.22%
Acerus Pharmaceuticals	-254.66%	-346.72%	-94.54%

Volatility & Risk

Allakos has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Acerus Pharmaceuticals has a beta of 2.6, indicating that its stock price is 160% more volatile than the S&P 500.

Insider & Institutional Ownership

84.6% of Allakos shares are owned by institutional investors. Comparatively, 0.0% of Acerus Pharmaceuticals shares are owned by institutional investors. 16.1% of Allakos shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Allakos and Acerus Pharmaceuticals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allakos	N/A	N/A	-$185.70 million	($1.32)	-0.19
Acerus Pharmaceuticals	$7.38 million	7.71	-$18.79 million	($0.08)	-2.75

Acerus Pharmaceuticals has higher revenue and earnings than Allakos. Acerus Pharmaceuticals is trading at a lower price-to-earnings ratio than Allakos, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Allakos and Acerus Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allakos	0	4	1	0	2.20
Acerus Pharmaceuticals	0	0	0	0	0.00

Allakos presently has a consensus target price of $2.00, suggesting a potential upside of 709.72%. Given Allakos’ stronger consensus rating and higher probable upside, equities analysts plainly believe Allakos is more favorable than Acerus Pharmaceuticals.

Summary

Allakos beats Acerus Pharmaceuticals on 9 of the 13 factors compared between the two stocks.

About Allakos

Allakos Inc., a clinical stage biotechnology company, develops therapeutics that target immunomodulatory receptors present on immune effector cells in allergy, inflammatory, and proliferative diseases in the United States. The company’s lead product candidate is AK006, which in a Phase I clinical trial for the treatment of chronic spontaneous urticaria (CSU) and other indications. The company was incorporated in 2012 and is headquartered in San Carlos, California.

About Acerus Pharmaceuticals

Acerus Pharmaceuticals Corporation, a specialty pharmaceutical company, focuses on the development, manufacture, marketing, and distribution of pharmaceutical products for men's and women's health. The company offers Natesto, a nasal gel for testosterone replacement therapy in adult males diagnosed with hypogonadism; Estrace, an oral tablet for the symptomatic relief of menopausal symptoms; and UriVarx, a natural health product that helps reduce symptoms of hyperactive bladder, such as daytime urinary frequency, urgency, and nocturia. It also engages in developing Lidbree, a short acting lidocaine formulation delivered through a proprietary device into the vaginal mucosal tissue; Stendra, a PDE5 inhibitor for the treatment of erectile dysfunction; Elegant vaginal moisturizer, which provides comfort to women suffering from vaginal dryness; and Elegant pH, a pH balanced vaginal product; Gynoflor, an ultra-low dose vaginal estrogen combined with a probiotic for the treatment of vaginal atrophy, restoration of vaginal flora, and treatment of certain vaginal infections; and Tefina, a clinical stage product for women with female sexual dysfunction. Acerus Pharmaceuticals Corporation sells products through its salesforce in Canada; and through a network of licensed distributors in the United States and internationally. The company was formerly known as Trimel Pharmaceuticals Corporation and changed its name to Acerus Pharmaceuticals Corporation in September 2015. Acerus Pharmaceuticals Corporation was founded in 2008 and is headquartered in Mississauga, Canada.