Contrasting Arbutus Biopharma (NASDAQ:ABUS) and Evaxion A/S (NASDAQ:EVAX)

Evaxion A/S (NASDAQ:EVAX) and Arbutus Biopharma (NASDAQ:ABUS) are both small-cap healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.

Earnings & Valuation

This table compares Evaxion A/S and Arbutus Biopharma”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evaxion A/S	$7.53 million	3.39	-$7.71 million	($1.21)	-2.34
Arbutus Biopharma	$181.72 million	4.60	-$33.50 million	$0.79	5.34

Evaxion A/S has higher earnings, but lower revenue than Arbutus Biopharma. Evaxion A/S is trading at a lower price-to-earnings ratio than Arbutus Biopharma, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Evaxion A/S and Arbutus Biopharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evaxion A/S	N/A	-61.43%	-34.23%
Arbutus Biopharma	84.22%	90.98%	82.34%

Risk and Volatility

Evaxion A/S has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, Arbutus Biopharma has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Evaxion A/S and Arbutus Biopharma, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evaxion A/S	1	0	5	0	2.67
Arbutus Biopharma	0	1	1	0	2.50

Evaxion A/S currently has a consensus price target of $11.00, suggesting a potential upside of 288.69%. Arbutus Biopharma has a consensus price target of $5.00, suggesting a potential upside of 18.48%. Given Evaxion A/S’s stronger consensus rating and higher probable upside, analysts plainly believe Evaxion A/S is more favorable than Arbutus Biopharma.

Insider & Institutional Ownership

11.0% of Evaxion A/S shares are owned by institutional investors. Comparatively, 43.8% of Arbutus Biopharma shares are owned by institutional investors. 41.6% of Evaxion A/S shares are owned by insiders. Comparatively, 19.9% of Arbutus Biopharma shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Arbutus Biopharma beats Evaxion A/S on 9 of the 14 factors compared between the two stocks.

About Evaxion A/S

Evaxion Biotech A/S, a clinical-stage biotech company, engages in developing artificial intelligence-powered immunotherapies. The company develops EVX-01, which is in phase 2 global multi-center clinical trial for the treatment of metastatic melanoma; EVX-02, a DNA-based vaccine that is in Phase 1/2a trial designed to induce a therapeutic immune response in the adjuvant setting in patients with resected melanoma; and EVX-03, DNA-based cancer vaccine for the treatment of various cancers. Its programs also include some vaccines that are in pre-clinical stage, which includes EVX-B1 for the prevention of S. aureus-induced skin and soft tissue infections in patients undergoing elective abdominal hernia surgery; EVX-B2 to target diseases caused by N. gonorrhoeae; EVX-B3 for eliciting strong humoral antibody and cellular immune response to the bacterial pathogen; and EVX-V1, viral vaccine product candidate for targeting Cytomegalovirus. Evaxion Biotech A/S was incorporated in 2008 and is based in Horsholm, Denmark.

About Arbutus Biopharma

Arbutus Biopharma Corporation, a biopharmaceutical company, develops novel therapeutics for chronic Hepatitis B virus (HBV) infection in the United States. Its HBV product pipeline consists of imdusiran (AB-729), a proprietary subcutaneously-delivered RNAi therapeutic product candidate that suppresses all HBV antigens, including HBsAg expression. The company’s research and development programs include AB-101, an oral PD-L1 inhibitor to reawaken patients’ HBV-specific immune system; and small molecule antiviral medicines to treat coronaviruses, including COVID-19. It has licensing agreements with Gritstone Oncology, Inc; Alnylam Pharmaceuticals, Inc.; Qilu Pharmaceuticals Co, Ltd; Assembly Biosciences, Inc.; Acuitas Therapeutics, Inc.; and Antios Therapeutics, Inc. Arbutus Biopharma Corporation also has a clinical collaboration agreement with Barinthus Biotherapeutics plc to evaluate VTP-300. The company was formerly known as Tekmira Pharmaceuticals Corporation and changed its name to Arbutus Biopharma Corporation in July 2015. Arbutus Biopharma Corporation is headquartered in Warminster, Pennsylvania.