Aclaris Therapeutics (NASDAQ:ACRS) & NovelStem International (OTCMKTS:NSTM) Critical Comparison

Aclaris Therapeutics (NASDAQ:ACRS) and NovelStem International (OTCMKTS:NSTM) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.

Profitability

This table compares Aclaris Therapeutics and NovelStem International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aclaris Therapeutics	-183.28%	-53.18%	-41.74%
NovelStem International	-9,166.67%	N/A	-73.18%

Volatility & Risk

Aclaris Therapeutics has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, NovelStem International has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500.

Institutional and Insider Ownership

98.3% of Aclaris Therapeutics shares are held by institutional investors. 6.4% of Aclaris Therapeutics shares are held by company insiders. Comparatively, 13.6% of NovelStem International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Aclaris Therapeutics and NovelStem International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aclaris Therapeutics	$32.02 million	2.65	-$88.48 million	($1.09)	-1.09
NovelStem International	$10,000.00	196.90	-$4.19 million	($0.04)	-1.05

NovelStem International has lower revenue, but higher earnings than Aclaris Therapeutics. Aclaris Therapeutics is trading at a lower price-to-earnings ratio than NovelStem International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Aclaris Therapeutics and NovelStem International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aclaris Therapeutics	0	6	0	0	2.00
NovelStem International	0	0	0	0	N/A

Aclaris Therapeutics currently has a consensus target price of $9.00, indicating a potential upside of 656.30%. Given Aclaris Therapeutics’ higher possible upside, analysts plainly believe Aclaris Therapeutics is more favorable than NovelStem International.

Summary

NovelStem International beats Aclaris Therapeutics on 7 of the 12 factors compared between the two stocks.

About Aclaris Therapeutics

Aclaris Therapeutics, Inc. a clinical-stage biopharmaceutical company, engages in the development of novel drug candidates for immune-inflammatory diseases in the United States. The company operates through two segments, Therapeutics and Contract Research. The Therapeutics segment is involved in identifying and developing therapies to address significant unmet needs for immuno-inflammatory diseases. The Contract Research segment provides laboratory services. It develops Zunsemetinib (ATI-450), an MK2 inhibitor which is under Phase 1b/2 trials for the treatment of metastatic breast and pancreatic cancer; ATI-1777, a soft JAK 1/3 inhibitor, completed Phase 2b trails for the treatment of moderate to severe atopic dermatitis and other dermatologic conditions; and ATI-2138, an oral covalent inhibitor of ITK and JAK3 inhibitor under Phase 1 trials as a treatment for T cell-mediated autoimmune diseases. The company was incorporated in 2012 and is headquartered in Wayne, Pennsylvania.

About NovelStem International

NovelStem International Corp., a development stage biotechnology holding company, focuses on development and commercialization of stem cell-based diagnostic technology for cancer treatments and to reduce resistance to chemotherapy. The company was formerly known as Hollywood Media Corp. and changed its name to NovelStem International Corp. in September 2018. NovelStem International Corp. was incorporated in 1993 and is headquartered in Boca Raton, Florida.