Critical Analysis: Curis (NASDAQ:CRIS) vs. Verastem (NASDAQ:VSTM)

Curis (NASDAQ:CRIS – Get Free Report) and Verastem (NASDAQ:VSTM – Get Free Report) are both small-cap healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Valuation & Earnings

This table compares Curis and Verastem”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Curis $9.44 million 0.16 -$7.58 million ($14.22) -0.05
Verastem $30.91 million 23.76 -$209.47 million ($2.66) -3.05

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

Volatility and Risk

Curis has a beta of 3.11, suggesting that its share price is 211% more volatile than the S&P 500. Comparatively, Verastem has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Curis and Verastem, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Curis 1 1 1 0 2.00
Verastem 1 1 10 0 2.75

Curis presently has a consensus price target of $43.00, suggesting a potential upside of 5,961.46%. Verastem has a consensus price target of $13.83, suggesting a potential upside of 70.57%. Given Curis’ higher possible upside, analysts plainly believe Curis is more favorable than Verastem.

Profitability

This table compares Curis and Verastem’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Curis N/A -2,365.94% -200.88%
Verastem -231.59% -467.49% -94.54%

Insider & Institutional Ownership

30.0% of Curis shares are held by institutional investors. Comparatively, 88.4% of Verastem shares are held by institutional investors. 5.8% of Curis shares are held by insiders. Comparatively, 1.9% of Verastem shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Verastem beats Curis on 8 of the 14 factors compared between the two stocks.

About Curis

(Get Free Report)

Curis, Inc., a biotechnology company, engages in the discovery and development of drug candidates for the treatment of human cancers in the United States. Its clinical stage drug candidates include Emavusertib, an oral small molecule IRAK4 kinase inhibitor, which is in a Phase 1/2 open-label, single arm expansion trial in patients with relapsed or refractory, or R/R, AML and high-risk myelodysplastic syndromes. The company’s pipeline also includes Fimepinostat, an oral dual inhibitor of HDAC and PI3K enzymes for the treatment of patients with relapsed or refractory diffuse large B-cell lymphoma; CA-170, an oral, small molecule antagonist designated as CA-170 that selectively targets PD-L1 and VISTA; and CA-327, an oral, small molecule, TIM3/PD-L1, which is a molecule antagonist of PD-L1 and TIM3. It has collaboration agreement with Genentech Inc., or Genentech and F. Hoffmann-La Roche Ltd, or Roche, for the commercialization of Erivedge, an orally-administered small molecule hedgehog signaling pathway antagonist for the treatment of advanced basal cell carcinoma, or BCC; Aurigene Discovery Technologies Limited for the discovery, development, and commercialization of small molecule compounds in the areas of immuno-oncology and precision oncology; and also licensed four programs under the Aurigene collaboration, including emavusertib. Curis, Inc. was incorporated in 2000 and is headquartered in Lexington, Massachusetts.

About Verastem

(Get Free Report)

Verastem, Inc., a development-stage biopharmaceutical company, focuses on developing and commercializing drugs for the treatment of cancer in the United States. Its product candidates are Avutometinib, an orally available small molecule RAF/MEK clamp that inhibits the ras sarcoma RAF/MEK, ERK mitogen activated pathway kinase pathway which is involved in cell proliferation, migration, transformation, and survival of tumor cells; and Defactinib, an oral small molecule inhibitor of FAK and proline-rich tyrosine kinase for various solid tumors. The company is involved in clinical studies, including RAMP 301, a randomized global confirmatory trial to evaluate the combination of Avutometinib and Defactinib for the treatment of patients with recurrent low-grade serous ovarian cancer; RAMP 201, an adaptive two-part multicenter, parallel cohort, randomized open label trial to evaluate the efficacy and safety of Avutometinib and in combination with Defactinib; and FRAME, an investigation of Avutometinib and Defactinib in patients with KRAS mutant cancers and subsequent analyses; and RAMP 204 and 205. It has license agreements with Chugai Pharmaceutical Co., Ltd. for the development, commercialization, and manufacture of products containing Avutometinib; and Pfizer Inc. to research, develop, manufacture, and commercialize products containing Pfizer's inhibitors of FAK for therapeutic, diagnostic, and prophylactic uses in humans. In addition, it has a clinical collaboration agreement with Amgen, Inc. to evaluate the combination of Avutometinib with Amgen's KRAS-G12C inhibitor LUMAKRAS which in Phase 1/2 trial entitled RAMP 203; and a discovery and development collaboration with GenFleet Therapeutics to advance new programs targeting RAS pathway-driven cancers. Verastem, Inc. was incorporated in 2010 and is headquartered in Needham, Massachusetts.

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