Acumen Pharmaceuticals (NASDAQ:ABOS) and Cytokinetics (NASDAQ:CYTK) Financial Analysis

Acumen Pharmaceuticals (NASDAQ:ABOS) and Cytokinetics (NASDAQ:CYTK) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.

Institutional & Insider Ownership

71.0% of Acumen Pharmaceuticals shares are owned by institutional investors. 7.1% of Acumen Pharmaceuticals shares are owned by company insiders. Comparatively, 2.6% of Cytokinetics shares are owned by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Acumen Pharmaceuticals	N/A	-123.07%	-79.41%
Cytokinetics	-784.02%	N/A	-52.86%

Volatility & Risk

Acumen Pharmaceuticals has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500. Comparatively, Cytokinetics has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Acumen Pharmaceuticals and Cytokinetics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acumen Pharmaceuticals	1	0	3	0	2.50
Cytokinetics	1	3	17	1	2.82

Acumen Pharmaceuticals currently has a consensus target price of $6.67, suggesting a potential upside of 192.40%. Cytokinetics has a consensus target price of $98.55, suggesting a potential upside of 29.93%. Given Acumen Pharmaceuticals’ higher possible upside, equities analysts clearly believe Acumen Pharmaceuticals is more favorable than Cytokinetics.

Earnings and Valuation

This table compares Acumen Pharmaceuticals and Cytokinetics”s 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	-$121.33 million	($1.86)	-1.23
Cytokinetics	$88.04 million	107.20	-$784.96 million	($6.84)	-11.09

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

Cytokinetics, Incorporated, a late-stage biopharmaceutical company, focuses on discovering, developing, and commercializing muscle activators and inhibitors as potential treatments for debilitating diseases. The company develops small molecule drug candidates primarily engineered to impact muscle function and contractility. Its drug candidates include omecamtiv mecarbil, a novel cardiac myosin activator that is in Phase III clinical trial in patients with heart failure. The company also develops CK-136, a novel cardiac troponin activator that is in Phase I clinical trial; CK-586, a small molecule cardiac myosin inhibitor, that is in Phase I clinical trial; and aficamten, a novel cardiac myosin inhibitor, which is in Phase III clinical trial for the treatment of patients with symptomatic obstructive hypertrophic cardiomyopathy. Cytokinetics, Incorporated has a strategic alliance with Ji Xing Pharmaceuticals Limited. The company was incorporated in 1997 and is headquartered in South San Francisco, California.