Analyzing Acasti Pharma (NASDAQ:ACST) and Annexon (NASDAQ:ANNX)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acasti Pharma	N/A	N/A	-$12.85 million	($1.44)	-2.34
Annexon	N/A	N/A	-$134.24 million	($1.05)	-4.91

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.

Insider and Institutional Ownership

6.1% of Acasti Pharma shares are owned by institutional investors. 13.5% of Acasti Pharma shares are owned by insiders. Comparatively, 12.7% of Annexon shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Acasti Pharma and Annexon, as provided by MarketBeat.

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

Acasti Pharma currently has a consensus target price of $10.00, indicating a potential upside of 196.74%. Annexon has a consensus target price of $15.80, indicating a potential upside of 206.20%. Given Annexon’s higher probable upside, analysts plainly believe Annexon is more favorable than Acasti Pharma.

Risk & Volatility

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Acasti Pharma	N/A	-13.61%	-11.56%
Annexon	N/A	-38.99%	-33.90%

Summary

Acasti Pharma beats Annexon on 7 of the 10 factors compared between the two stocks.

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.

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.