Analyzing Sierra Oncology (SRRA) & ArQule (ARQL)

Sierra Oncology (NASDAQ:SRRA) and ArQule (NASDAQ:ARQL) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and badyst recommendations.

Volatility & Risk

Sierra Oncology has a beta of 2.18, suggesting that its share price is 118% more volatile than the S&P 500. Comparatively, ArQule has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Sierra Oncology and ArQule, as reported by MarketBeat.com.

ArQule has a consensus target price of $7.00, suggesting a potential upside of 56.60%. Given ArQule’s higher possible upside, badysts clearly believe ArQule is more favorable than Sierra Oncology.

Valuation and Earnings

This table compares Sierra Oncology and ArQule’s revenue, earnings per share (EPS) and valuation.

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

Profitability

This table compares Sierra Oncology and ArQule’s net margins, return on equity and return on badets.

Insider and Institutional Ownership

64.2% of Sierra Oncology shares are held by institutional investors. Comparatively, 65.1% of ArQule shares are held by institutional investors. 5.6% of Sierra Oncology shares are held by insiders. Comparatively, 7.9% of ArQule shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

ArQule beats Sierra Oncology on 8 of the 10 factors compared between the two stocks.

Sierra Oncology Company Profile

Sierra Oncology, Inc., a clinical stage drug development company, researches, develops, and commercializes DNA Damage Response (DDR) therapeutics for the treatment of patients with cancer in the United States and internationally. The company’s lead drug candidate is SRA737, an orally bioavailable small molecule inhibitor of Checkpoint kinase 1, which is in Phase 1 clinical trial to treat patients with advanced cancer. It also engages in developing SRA141, an orally bioavailable small molecule inhibitor of the cell division cycle 7 kinase that is in preclinical development stage. The company was formerly known as ProNAi Therapeutics, Inc. and changed its name to Sierra Oncology, Inc. in January 2017. Sierra Oncology, Inc. was founded in 2003 and is headquartered in Vancouver, Canada.

ArQule Company Profile

ArQule, Inc., a biopharmaceutical company, researches and develops therapeutics for the treatment of cancer and rare diseases in the United States. It offers Derazantinib (ARQ 087), a multi-kinase inhibitor of the fibroblast growth factor receptor (FGFR) family that is in a registration trial in intrahepatic cholangiocarcinoma with FGFR2 fusions. The company’s clinical-stage products include Miransertib (ARQ 092), an inhibitor of the AKT serine/threonine kinase in Phase 1/2 clinical trial in rare Overgrowth Diseases, Phase 1 clinical trial in the rare disease, and in Phase 1b in oncology in combination with the hormonal therapy and anastrozole; ARQ 751, a next-generation inhibitor of AKT that is in Phase I clinical trial for solid tumors harboring the AKT1 or PI3K mutation; ARQ 761, a ß-lapachone badog evaluated as a promoter of NQO1-mediated programmed cancer cell death which is in Phase 1/2 clinical trial in multiple oncology; and ARQ 531, an orally bioavailable, potent and reversible inhibitor of wild type and C481S-mutant Bruton’s tyrosine kinase that is in Phase 1 for B-cell malignancies refractory to other therapeutic options. It has collaboration agreement with Roivant Sciences Ltd. to develop derazantinib, a pan-FGFR inhibitor. ArQule, Inc. was founded in 1993 and is headquartered in Burlington, Mbadachusetts.

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