Cytokinetics (NASDAQ:CYTK) and Fulcrum Therapeutics (NASDAQ:FULC) Head to Head Analysis

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

Insider and Institutional Ownership

89.8% of Fulcrum Therapeutics shares are owned by institutional investors. 3.4% of Cytokinetics shares are owned by insiders. Comparatively, 4.1% of Fulcrum Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Cytokinetics and Fulcrum Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cytokinetics	-14,141.74%	N/A	-67.32%
Fulcrum Therapeutics	-3,470.05%	-40.60%	-37.19%

Risk and Volatility

Cytokinetics has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Fulcrum Therapeutics has a beta of 2.35, suggesting that its stock price is 135% more volatile than the S&P 500.

Valuation and Earnings

This table compares Cytokinetics and Fulcrum Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cytokinetics	$3.75 million	1,349.80	-$526.24 million	($5.40)	-8.94
Fulcrum Therapeutics	$2.81 million	159.47	-$97.33 million	($1.60)	-4.51

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Cytokinetics and Fulcrum Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cytokinetics	0	3	14	0	2.82
Fulcrum Therapeutics	0	0	7	0	3.00

Cytokinetics currently has a consensus price target of $77.47, suggesting a potential upside of 60.39%. Fulcrum Therapeutics has a consensus price target of $15.57, suggesting a potential upside of 115.97%. Given Fulcrum Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Fulcrum Therapeutics is more favorable than Cytokinetics.

Summary

Fulcrum Therapeutics beats Cytokinetics on 10 of the 14 factors compared between the two stocks.

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.

About Fulcrum Therapeutics

Fulcrum Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing products for improving the lives of patients with genetically defined diseases in the areas of high unmet medical need in the United States. Its product candidates are losmapimod, a small molecule for the treatment of facioscapulohumeral muscular dystrophy is under phase III clinical trial; and pociredir, a fetal hemoglobin inducer for the treatment of sickle cell disease and beta-thalassemia is under phase I clinical trial. The company is also discovering drug targets for the treatments of rare neuromuscular, muscular, central nervous system, and hematologic disorders, as well as cardiomyopathies and pulmonary diseases. Fulcrum Therapeutics, Inc. has collaboration and license agreement with Acceleron Pharma Inc. to identify biological targets to modulate specific pathways associated with a targeted indication within the pulmonary disease space; and MyoKardia, Inc. to discover and develop therapies for the treatment of genetic cardiomyopathies. Fulcrum Therapeutics, Inc. was Incorporated in 2015 and is headquartered in Cambridge, Massachusetts.