Critical Contrast: Lexaria Bioscience (NASDAQ:LEXX) and Arcturus Therapeutics (NASDAQ:ARCT)

Lexaria Bioscience (NASDAQ:LEXXGet Rating) and Arcturus Therapeutics (NASDAQ:ARCTGet Rating) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.

Earnings and Valuation

This table compares Lexaria Bioscience and Arcturus Therapeutics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lexaria Bioscience $250,000.00 64.99 -$7.27 million ($1.25) -2.18
Arcturus Therapeutics $12.40 million 39.55 -$203.67 million ($5.56) -3.32

Lexaria Bioscience has higher earnings, but lower revenue than Arcturus Therapeutics. Arcturus Therapeutics is trading at a lower price-to-earnings ratio than Lexaria Bioscience, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Lexaria Bioscience and Arcturus Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lexaria Bioscience -2,839.84% -74.11% -72.45%
Arcturus Therapeutics -284.78% -80.43% -42.96%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Lexaria Bioscience and Arcturus Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lexaria Bioscience 0 0 0 0 N/A
Arcturus Therapeutics 3 1 4 0 2.13

Arcturus Therapeutics has a consensus price target of $28.25, suggesting a potential upside of 52.95%. Given Arcturus Therapeutics’ higher possible upside, analysts clearly believe Arcturus Therapeutics is more favorable than Lexaria Bioscience.

Insider and Institutional Ownership

11.6% of Lexaria Bioscience shares are held by institutional investors. Comparatively, 83.7% of Arcturus Therapeutics shares are held by institutional investors. 9.6% of Lexaria Bioscience shares are held by company insiders. Comparatively, 12.7% of Arcturus Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Lexaria Bioscience has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, Arcturus Therapeutics has a beta of 2.5, meaning that its share price is 150% more volatile than the S&P 500.

Summary

Arcturus Therapeutics beats Lexaria Bioscience on 8 of the 13 factors compared between the two stocks.

About Lexaria Bioscience

(Get Rating)

Lexaria Bioscience Corp. is a biotechnology company, which engages in the provision of active pharmaceutical ingredients through its DehydraTECH drug delivery technology. Its products can be used with APIs encompassing fat-soluble vitamins, non-steroidal anti-inflammatory drugs (NSAIDs) pain medications, hormones, phosphodiesterase inhibitors, antivirals, nicotine and its analogs, and all cannabinoids including tetrahydrocannabinol (THC) for therapeutic indications, as well as hypertension, SARS-CoV-2/COVID-19, and HIV/AIDS. It operates through the following segments: IP Licensing, B2B Product, and Corporate. The company was founded on December 9, 2004 and is headquartered in Kelowna, Canada.

About Arcturus Therapeutics

(Get Rating)

Arcturus Therapeutics Holdings Inc., an RNA medicines company, focuses on the development of vaccines for infectious, and liver and respiratory rare diseases in the United States. The company's development programs comprise LUNAR-OTC development program for ornithine transcarbamylase (OTC) deficiency; and LUNAR-CF program for cystic fibrosis lung disease caused by mutations in cystic fibrosis transmembrane conductance regulator (CFTR) gene, as well as vaccine programs include LUNAR-COV19 and LUNAR-FLU. It has collaboration partnerships with Vinbiocare Biotechnology Joint Stock Company for the manufacture of COVID-19 vaccines; Janssen Pharmaceuticals, Inc. to develop nucleic acid-based therapeutic candidates for the treatment of hepatitis B virus; Ultragenyx Pharmaceutical, Inc. to develop mRNA therapeutic candidates for rare disease targets; CureVac AG to develop mRNA therapeutic and vaccine candidates for various indications; Singapore Economic Development Board and Duke-NUS Medical School to develop LUNAR-COV19 vaccine; and Millennium Pharmaceuticals, Inc. to discover siRNA medicines for the treatment of non-alcoholic steatohepatitis. The company was founded in 2013 and is headquartered in San Diego, California.

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