Analyzing Aclaris Therapeutics (NASDAQ:ACRS) and Upstream Bio (NASDAQ:UPB)

Upstream Bio (NASDAQ:UPBGet Free Report) and Aclaris Therapeutics (NASDAQ:ACRSGet Free Report) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Institutional & Insider Ownership

98.3% of Aclaris Therapeutics shares are held by institutional investors. 16.5% of Upstream Bio shares are held by company insiders. Comparatively, 4.8% of Aclaris Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Upstream Bio and Aclaris Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Upstream Bio 1 2 4 0 2.43
Aclaris Therapeutics 1 0 5 3 3.11

Upstream Bio currently has a consensus price target of $29.67, suggesting a potential upside of 461.55%. Aclaris Therapeutics has a consensus price target of $11.33, suggesting a potential upside of 106.70%. Given Upstream Bio’s higher probable upside, analysts plainly believe Upstream Bio is more favorable than Aclaris Therapeutics.

Profitability

This table compares Upstream Bio and Aclaris Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Upstream Bio -4,955.67% -48.40% -46.57%
Aclaris Therapeutics -921.50% -61.65% -42.41%

Valuation & Earnings

This table compares Upstream Bio and Aclaris Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Upstream Bio $3.16 million 91.63 -$143.44 million ($2.90) -1.82
Aclaris Therapeutics $7.83 million 97.91 -$64.92 million ($0.58) -9.45

Aclaris Therapeutics has higher revenue and earnings than Upstream Bio. Aclaris Therapeutics is trading at a lower price-to-earnings ratio than Upstream Bio, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Upstream Bio has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, Aclaris Therapeutics has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.

Summary

Aclaris Therapeutics beats Upstream Bio on 10 of the 15 factors compared between the two stocks.

About Upstream Bio

(Get Free Report)

Upstream Bio, Inc., a clinical-stage biotechnology company, develops treatments for inflammatory diseases that focuses on severe respiratory disorders. It develops verekitug, a monoclonal antibody that targets and inhibits the thymic stromal lymphopoietin receptor. The company also develops therapies to treat severe asthma, chronic rhinosinusitis with nasal polyps, and chronic obstructive pulmonary disease. Upstream Bio, Inc. was incorporated in 2021 and is based in Waltham, Massachusetts.

About Aclaris Therapeutics

(Get Free Report)

Aclaris Therapeutics, Inc. a clinical-stage biopharmaceutical company, engages in the development of novel drug candidates for immune-inflammatory diseases in the United States. The company operates through two segments, Therapeutics and Contract Research. The Therapeutics segment is involved in identifying and developing therapies to address significant unmet needs for immuno-inflammatory diseases. The Contract Research segment provides laboratory services. It develops Zunsemetinib (ATI-450), an MK2 inhibitor which is under Phase 1b/2 trials for the treatment of metastatic breast and pancreatic cancer; ATI-1777, a soft JAK 1/3 inhibitor, completed Phase 2b trails for the treatment of moderate to severe atopic dermatitis and other dermatologic conditions; and ATI-2138, an oral covalent inhibitor of ITK and JAK3 inhibitor under Phase 1 trials as a treatment for T cell-mediated autoimmune diseases. The company was incorporated in 2012 and is headquartered in Wayne, Pennsylvania.

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