Arch Therapeutics (OTCMKTS:ARTH) vs. Alpha Tau Medical (NASDAQ:DRTS) Financial Analysis

Arch Therapeutics (OTCMKTS:ARTH) and Alpha Tau Medical (NASDAQ:DRTS) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares Arch Therapeutics and Alpha Tau Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arch Therapeutics	-8,257.70%	N/A	-730.22%
Alpha Tau Medical	N/A	-38.62%	-29.89%

Institutional and Insider Ownership

6.9% of Arch Therapeutics shares are owned by institutional investors. Comparatively, 2.7% of Alpha Tau Medical shares are owned by institutional investors. 4.5% of Arch Therapeutics shares are owned by company insiders. Comparatively, 39.5% of Alpha Tau Medical shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Arch Therapeutics and Alpha Tau Medical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arch Therapeutics	0	0	0	0	0.00
Alpha Tau Medical	0	0	2	0	3.00

Alpha Tau Medical has a consensus price target of $8.00, suggesting a potential upside of 198.51%. Given Alpha Tau Medical’s stronger consensus rating and higher possible upside, analysts plainly believe Alpha Tau Medical is more favorable than Arch Therapeutics.

Valuation & Earnings

This table compares Arch Therapeutics and Alpha Tau Medical”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arch Therapeutics	$80,000.00	15.55	-$6.98 million	N/A	N/A
Alpha Tau Medical	N/A	N/A	-$29.16 million	($0.43)	-6.23

Arch Therapeutics has higher revenue and earnings than Alpha Tau Medical.

Risk and Volatility

Arch Therapeutics has a beta of 3.46, meaning that its stock price is 246% more volatile than the S&P 500. Comparatively, Alpha Tau Medical has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Summary

Alpha Tau Medical beats Arch Therapeutics on 6 of the 11 factors compared between the two stocks.

About Arch Therapeutics

Arch Therapeutics, Inc., together with its subsidiaries, operates as a biotechnology company in the United States. It develops and markets products based on its AC5 self-assembling technology platform to stop bleeding and control leaking, as well as manages wounds during surgery, trauma, and interventional care or from disease. The company's flagship products include AC5 advanced wound system and AC5 topical hemostat, which are intended for skin applications, such as management of complicated chronic wounds or acute surgical wounds. It is also involved in the development of AC5-G for gastrointestinal endoscopic procedures, and AC5-V and AC5 surgical hemostat for hemostasis inside the body. The company was founded in 2006 and is based in Framingham, Massachusetts.

About Alpha Tau Medical

Alpha Tau Medical Ltd., a clinical-stage oncology therapeutics company, engages in research, development, and commercialization of diffusing alpha-emitters radiation therapy (Alpha DaRT) for the treatment of solid cancer In Israel and the United States. Its Alpha-DaRT technology used in clinical trials for skin, oral, pancreatic, prostate, and breast cancers; and preclinical studies for brain, hepatic cell carcinoma, glioblastoma multiforme, lung cancer, and others. The company was incorporated in 2015 and is headquartered in Jerusalem, Israel.