Contrasting Acumen Pharmaceuticals (NASDAQ:ABOS) and MeiraGTx (NASDAQ:MGTX)

Acumen Pharmaceuticals (NASDAQ:ABOS) and MeiraGTx (NASDAQ:MGTX) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Institutional and Insider Ownership

71.0% of Acumen Pharmaceuticals shares are owned by institutional investors. Comparatively, 67.5% of MeiraGTx shares are owned by institutional investors. 7.1% of Acumen Pharmaceuticals shares are owned by insiders. Comparatively, 8.4% of MeiraGTx shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Acumen Pharmaceuticals and MeiraGTx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Acumen Pharmaceuticals	N/A	-32.99%	-27.99%
MeiraGTx	-633.05%	-146.38%	-53.05%

Volatility and Risk

Acumen Pharmaceuticals has a beta of -0.07, indicating that its share price is 107% less volatile than the S&P 500. Comparatively, MeiraGTx has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Acumen Pharmaceuticals and MeiraGTx, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acumen Pharmaceuticals	0	0	2	1	3.33
MeiraGTx	0	0	2	0	3.00

Acumen Pharmaceuticals currently has a consensus target price of $9.33, indicating a potential upside of 418.52%. MeiraGTx has a consensus target price of $23.50, indicating a potential upside of 302.40%. Given Acumen Pharmaceuticals’ stronger consensus rating and higher possible upside, equities analysts plainly believe Acumen Pharmaceuticals is more favorable than MeiraGTx.

Earnings & Valuation

This table compares Acumen Pharmaceuticals and MeiraGTx”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acumen Pharmaceuticals	N/A	N/A	-$52.37 million	($1.38)	-1.30
MeiraGTx	$13.93 million	32.77	-$84.03 million	($1.21)	-4.83

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

Summary

Acumen Pharmaceuticals beats MeiraGTx on 9 of the 13 factors compared between the two stocks.

About Acumen Pharmaceuticals

Acumen Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops targeted therapies for the treatment of Alzheimer’s disease. The company focuses on advancing a targeted immunotherapy drug candidate sabirnetug (ACU193), a recombinant humanized immunoglobulin gamma 2 that completed Phase I clinical trial to target soluble amyloid-beta oligomers. The company has a license agreement with Lonza Sales AG to manufacture and commercialize sabirnetug; and a collaboration and license agreement with Halozyme, Inc. for the development of a subcutaneous formulation of sabirnetug. Acumen Pharmaceuticals, Inc. was incorporated in 1996 and is headquartered in Charlottesville, Virginia.

About MeiraGTx

MeiraGTx Holdings plc, a clinical stage gene therapy company, focusing on developing treatments for patients with serious diseases. The company develops various therapies for ocular diseases, including inherited retinal diseases and large degenerative ocular diseases, neurodegenerative diseases, and xerostomia. Its programs in clinical development include Phase I/II clinical stage programs in achromatopsia, X-linked retinitis pigmentosa, and RPE65-deficiency; Phase I clinical trials for radiation-induced xerostomia; and Parkinson's program that has completed a Phase II trial. It has a research collaboration agreement with Janssen Pharmaceuticals, Inc. for the research, development, and commercialization of gene therapies for the treatment of inherited retinal disease. The company was incorporated in 2015 and is based in New York, New York.