Reviewing Kazia Therapeutics (NASDAQ:KZIA) and Arcutis Biotherapeutics (NASDAQ:ARQT)

Kazia Therapeutics (NASDAQ:KZIAGet Rating) and Arcutis Biotherapeutics (NASDAQ:ARQTGet Rating) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Kazia Therapeutics and Arcutis Biotherapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kazia Therapeutics N/A N/A N/A
Arcutis Biotherapeutics N/A -70.63% -58.95%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Kazia Therapeutics and Arcutis Biotherapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kazia Therapeutics 0 0 1 0 3.00
Arcutis Biotherapeutics 0 0 4 0 3.00

Kazia Therapeutics presently has a consensus price target of $18.00, suggesting a potential upside of 241.56%. Arcutis Biotherapeutics has a consensus price target of $47.00, suggesting a potential upside of 122.22%. Given Kazia Therapeutics’ higher possible upside, analysts plainly believe Kazia Therapeutics is more favorable than Arcutis Biotherapeutics.

Volatility and Risk

Kazia Therapeutics has a beta of 2.4, suggesting that its share price is 140% more volatile than the S&P 500. Comparatively, Arcutis Biotherapeutics has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500.

Institutional & Insider Ownership

3.6% of Kazia Therapeutics shares are owned by institutional investors. Comparatively, 87.6% of Arcutis Biotherapeutics shares are owned by institutional investors. 1.0% of Kazia Therapeutics shares are owned by insiders. Comparatively, 23.0% of Arcutis Biotherapeutics 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.

Valuation and Earnings

This table compares Kazia Therapeutics and Arcutis Biotherapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kazia Therapeutics $11.35 million 6.13 -$6.29 million N/A N/A
Arcutis Biotherapeutics N/A N/A -$206.36 million ($4.67) -4.53

Kazia Therapeutics has higher revenue and earnings than Arcutis Biotherapeutics.

Summary

Kazia Therapeutics beats Arcutis Biotherapeutics on 6 of the 9 factors compared between the two stocks.

Kazia Therapeutics Company Profile (Get Rating)

Kazia Therapeutics Limited, an oncology-focused biotechnology company, develops anti-cancer drugs. Its lead development candidate is Paxalisib, a small molecule, brain-penetrant inhibitor of the PI3K/Akt/mTor pathway, which is developed as a potential therapy for glioblastoma. It is also developing EVT801, an investigational new drug for various forms of cancer. The company was formerly known as Novogen Limited and changed its name to Kazia Therapeutics Limited in November 2017. Kazia Therapeutics Limited was incorporated in 1994 and is based in Sydney, Australia.

Arcutis Biotherapeutics Company Profile (Get Rating)

Arcutis Biotherapeutics, Inc., a biopharmaceutical company, focuses on developing and commercializing treatments for dermatological diseases. Its lead product candidate is ARQ-151, a topical roflumilast cream that has completed Phase III clinical trials for the treatment of plaque psoriasis and atopic dermatitis. The company is also developing ARQ-154, a topical foam formulation of roflumilast for the treatment of seborrheic dermatitis and scalp psoriasis; ARQ-252, a selective topical janus kinase type 1 inhibitor for hand eczema and vitiligo; and ARQ-255, a topical formulation of ARQ-252 designed to reach deeper into the skin in order to treat alopecia areata. The company was formerly known as Arcutis, Inc. and changed its name to Arcutis Biotherapeutics, Inc. in October 2019. Arcutis Biotherapeutics, Inc. was incorporated in 2016 and is headquartered in Westlake Village, California.

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