Annexon (NASDAQ:ANNX) vs. Acasti Pharma (NASDAQ:ACST) Critical Analysis

Annexon (NASDAQ:ANNX) and Acasti Pharma (NASDAQ:ACST) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Risk & Volatility

Annexon has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Acasti Pharma has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.

Insider & Institutional Ownership

6.1% of Acasti Pharma shares are held by institutional investors. 12.7% of Annexon shares are held by company insiders. Comparatively, 13.5% of Acasti Pharma shares are held by company 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.

Profitability

This table compares Annexon and Acasti Pharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Annexon	N/A	-44.68%	-38.02%
Acasti Pharma	N/A	-13.61%	-11.56%

Analyst Ratings

This is a summary of current ratings and recommmendations for Annexon and Acasti Pharma, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Annexon	0	0	6	0	3.00
Acasti Pharma	0	0	2	0	3.00

Annexon currently has a consensus target price of $15.80, suggesting a potential upside of 145.72%. Acasti Pharma has a consensus target price of $10.00, suggesting a potential upside of 196.74%. Given Acasti Pharma’s higher probable upside, analysts plainly believe Acasti Pharma is more favorable than Annexon.

Valuation and Earnings

This table compares Annexon and Acasti Pharma”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Annexon	N/A	N/A	-$134.24 million	($1.23)	-5.23
Acasti Pharma	N/A	N/A	-$12.85 million	($1.44)	-2.34

Annexon is trading at a lower price-to-earnings ratio than Acasti Pharma, indicating that it is currently the more affordable of the two stocks.

Summary

Acasti Pharma beats Annexon on 8 of the 10 factors compared between the two stocks.

About Annexon

Annexon, Inc., a clinical-stage biopharmaceutical company, discovers and develops medicines for treating inflammatory-related diseases. Its lead candidate is ANX005, an investigational full-length monoclonal antibody, which is in Phase 3 clinical trial for the treatment of patients with guillain-barré syndrome; completed Phase II clinical trial for treating Huntington's disease; and in Phase II clinical trial for the treatment of amyotrophic lateral sclerosis. The company is also developing ANX007, an antigen-binding fragment (Fab) that is in Phase 3 program for the treatment of patients with geographic atrophy; and ANX1502, a novel oral small molecule inhibitor, which is in Phase 1 clinical trials for autoimmune indications. In addition, it develops ANX009, a C1q-blocking Fab that is in Phase I clinical trial for treating patients with lupus nephritis. The company was incorporated in 2011 and is headquartered in Brisbane, California.

About Acasti Pharma

Acasti Pharma Inc. engages in the development and commercialization of pharmaceutical products for rare and orphan diseases in Canada. The company's lead product candidate is the GTX-104, an intravenous infusion to treat subarachnoid hemorrhage. It also develops GTX-102, an oral mucosal spray for the treatment of ataxia-telangiectasia; and GTX-101, a topical bioadhesive film-forming bupivacaine spray for postherpetic neuralgia. The company was incorporated in 2002 and is headquartered in Laval, Canada.