Financial Analysis: Eloxx Pharmaceuticals (NASDAQ:ELOX) and Acumen Pharmaceuticals (NASDAQ:ABOS)

Acumen Pharmaceuticals (NASDAQ:ABOS) and Eloxx Pharmaceuticals (NASDAQ:ELOX) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Insider and Institutional Ownership

71.0% of Acumen Pharmaceuticals shares are owned by institutional investors. Comparatively, 2.9% of Eloxx Pharmaceuticals shares are owned by institutional investors. 7.1% of Acumen Pharmaceuticals shares are owned by insiders. Comparatively, 20.2% of Eloxx Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Acumen Pharmaceuticals and Eloxx Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Acumen Pharmaceuticals	N/A	-32.99%	-27.99%
Eloxx Pharmaceuticals	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for Acumen Pharmaceuticals and Eloxx Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acumen Pharmaceuticals	0	0	2	1	3.33
Eloxx Pharmaceuticals	0	0	0	0	0.00

Acumen Pharmaceuticals currently has a consensus target price of $9.33, suggesting a potential upside of 671.35%. Given Acumen Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Acumen Pharmaceuticals is more favorable than Eloxx Pharmaceuticals.

Volatility and Risk

Acumen Pharmaceuticals has a beta of -0.01, indicating that its share price is 101% less volatile than the S&P 500. Comparatively, Eloxx Pharmaceuticals has a beta of 2.38, indicating that its share price is 138% more volatile than the S&P 500.

Valuation & Earnings

This table compares Acumen Pharmaceuticals and Eloxx Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acumen Pharmaceuticals	N/A	N/A	-$52.37 million	($1.38)	-0.88
Eloxx Pharmaceuticals	N/A	N/A	-$36.06 million	N/A	N/A

About Acumen Pharmaceuticals

Acumen Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops targeted therapies for the treatment of Alzheimer’s disease. The company focuses on advancing a targeted immunotherapy drug candidate sabirnetug (ACU193), a recombinant humanized immunoglobulin gamma 2 that completed Phase I clinical trial to target soluble amyloid-beta oligomers. The company has a license agreement with Lonza Sales AG to manufacture and commercialize sabirnetug; and a collaboration and license agreement with Halozyme, Inc. for the development of a subcutaneous formulation of sabirnetug. Acumen Pharmaceuticals, Inc. was incorporated in 1996 and is headquartered in Charlottesville, Virginia.

About Eloxx Pharmaceuticals

Eloxx Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on developing ribosome modulation for the treatment of rare and ultra-rare premature stop codon diseases. Its lead investigational drug product candidate is ELX-02, which is in Phase 2 clinical trial for the treatment of cystic fibrosis and nephropathic cystinosis patients with diagnosed nonsense mutations. The company also develops various preclinical programs for the treatment of alport syndrome, recessive dystrophic epidermolysis bullosa, junctional epidermolysis bullosa, and familial adenomatous polyposis, as well as various earlier discovery stage programs in oncology. Eloxx Pharmaceuticals, Inc. was founded in 2013 and is headquartered in Watertown, Massachusetts.