Contrasting Arcus Biosciences (RCUS) and Its Rivals

Arcus Biosciences (NYSE:RCUS) is one of 844 publicly-traded companies in the “Biotechnology” industry, but how does it weigh in compared to its competitors? We will compare Arcus Biosciences to related businesses based on the strength of its analyst recommendations, dividends, risk, earnings, institutional ownership, profitability and valuation.

Profitability

This table compares Arcus Biosciences and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arcus Biosciences	-453.00%	-91.65%	-46.72%
Arcus Biosciences Competitors	-12,323.33%	-195.91%	-30.60%

Risk & Volatility

Arcus Biosciences has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Arcus Biosciences’ competitors have a beta of -1.84, suggesting that their average share price is 284% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Arcus Biosciences and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcus Biosciences	1	3	12	0	2.69
Arcus Biosciences Competitors	9869	15284	45614	1598	2.54

Arcus Biosciences currently has a consensus price target of $39.36, indicating a potential upside of 121.19%. As a group, “Biotechnology” companies have a potential upside of 125.37%. Given Arcus Biosciences’ competitors higher possible upside, analysts clearly believe Arcus Biosciences has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

92.9% of Arcus Biosciences shares are held by institutional investors. Comparatively, 47.8% of shares of all “Biotechnology” companies are held by institutional investors. 7.6% of Arcus Biosciences shares are held by insiders. Comparatively, 13.1% of shares of all “Biotechnology” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Arcus Biosciences and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Arcus Biosciences	$247.00 million	-$353.00 million	-4.90
Arcus Biosciences Competitors	$700.54 million	$9.44 million	-18.96

Arcus Biosciences’ competitors have higher revenue and earnings than Arcus Biosciences. Arcus Biosciences is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Arcus Biosciences beats its competitors on 7 of the 13 factors compared.

Arcus Biosciences Company Profile

Arcus Biosciences is a clinical-stage biopharmaceutical company focused on developing medicines for cancer. Founded in 2015 and headquartered in Hayward, California, the company researches therapies that target immune pathways and other processes involved in tumor growth. Its pipeline consists of investigational medicines, including antibody and small-molecule candidates designed to be used alone or in combination. Arcus’s research has focused on areas such as checkpoint inhibition and the adenosine pathway; its candidates are under clinical development and are not established treatments.