Longboard Pharmaceuticals (NASDAQ:LBPH – Get Rating) and Erasca (NASDAQ:ERAS – Get Rating) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.
Valuation & Earnings
This table compares Longboard Pharmaceuticals and Erasca's top-line revenue, earnings per share (EPS) and valuation.
Get Longboard Pharmaceuticals alerts:| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Longboard Pharmaceuticals | N/A | N/A | -$27.80 million | ($2.43) | -2.35 |
| Erasca | N/A | N/A | -$122.76 million | ($1.16) | -3.34 |
Erasca is trading at a lower price-to-earnings ratio than Longboard Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Longboard Pharmaceuticals and Erasca's net margins, return on equity and return on assets.| Net Margins | Return on Equity | Return on Assets | |
| Longboard Pharmaceuticals | N/A | -46.99% | -43.46% |
| Erasca | N/A | -33.63% | -29.55% |
Institutional & Insider Ownership
53.5% of Longboard Pharmaceuticals shares are held by institutional investors. Comparatively, 65.8% of Erasca shares are held by institutional investors. 6.8% of Longboard Pharmaceuticals shares are held by company insiders. Comparatively, 37.5% of Erasca shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Longboard Pharmaceuticals has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, Erasca has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Longboard Pharmaceuticals and Erasca, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Longboard Pharmaceuticals | 0 | 0 | 4 | 0 | 3.00 |
| Erasca | 0 | 0 | 0 | 0 | N/A |
Longboard Pharmaceuticals presently has a consensus price target of $15.00, suggesting a potential upside of 163.16%. Given Longboard Pharmaceuticals' higher possible upside, research analysts plainly believe Longboard Pharmaceuticals is more favorable than Erasca.
Summary
Erasca beats Longboard Pharmaceuticals on 6 of the 10 factors compared between the two stocks.
About Longboard Pharmaceuticals
(Get Rating)
Longboard Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on developing transformative medicines for neurological diseases. The company's lead product candidate is LP352, which is in a Phase 1b/2a clinical trial for the treatment of seizures associated with developmental and epileptic encephalopathies. Its preclinical product candidates include LP659 and LP143, which focuses on developing therapies for multiple neurological diseases. The company was formerly known as Arena Neuroscience, Inc. and changed its name to Longboard Pharmaceuticals, Inc. in October 2020. Longboard Pharmaceuticals, Inc. was incorporated in 2020 and is based in La Jolla, California.
About Erasca
(Get Rating)
Erasca, Inc., a clinical-stage biopharmaceutical company, focuses on discovering, developing, and commercializing therapies for patients with RAS/MAPK pathway-driven cancers. The company's lead candidates include ERAS-007, an oral inhibitor of ERK1/2 for the treatment of non-small cell lung cancer, colorectal cancer, and acute myeloid leukemia; and ERAS-601, an oral SHP2 inhibitor for patients with advanced or metastatic solid tumors. It is also developing ERAS-801, a central nervous system-penetrant EGFR inhibitor for the treatment of patients with recurrent glioblastoma multiforme. The company was incorporated in 2018 and is headquartered in San Diego, California.
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