Contrasting Acerus Pharmaceuticals (OTCMKTS:ASPCF) & Aquestive Therapeutics (NASDAQ:AQST)

Aquestive Therapeutics (NASDAQ:AQST) and Acerus Pharmaceuticals (OTCMKTS:ASPCF) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Insider & Institutional Ownership

32.5% of Aquestive Therapeutics shares are owned by institutional investors. 7.9% of Aquestive Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Aquestive Therapeutics has a beta of 2.84, indicating that its stock price is 184% more volatile than the S&P 500. Comparatively, Acerus Pharmaceuticals has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.

Profitability

This table compares Aquestive Therapeutics and Acerus Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aquestive Therapeutics	-44.07%	N/A	-28.26%
Acerus Pharmaceuticals	-924.33%	N/A	-74.62%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aquestive Therapeutics	$58.36 million	7.36	-$7.87 million	($0.42)	-11.24
Acerus Pharmaceuticals	$2.12 million	0.80	-$33.82 million	($3.57)	-0.06

Aquestive Therapeutics has higher revenue and earnings than Acerus Pharmaceuticals. Aquestive Therapeutics is trading at a lower price-to-earnings ratio than Acerus Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations for Aquestive Therapeutics and Acerus Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aquestive Therapeutics	0	0	6	1	3.14
Acerus Pharmaceuticals	0	0	0	0	N/A

Aquestive Therapeutics currently has a consensus target price of $7.83, indicating a potential upside of 65.96%. Given Aquestive Therapeutics’ higher probable upside, analysts plainly believe Aquestive Therapeutics is more favorable than Acerus Pharmaceuticals.

Summary

Aquestive Therapeutics beats Acerus Pharmaceuticals on 12 of the 13 factors compared between the two stocks.

About Aquestive Therapeutics

Aquestive Therapeutics, Inc. operates as a pharmaceutical company in the United States and internationally. The company markets Sympazan, an oral soluble film formulation of clobazam for the treatment of lennox-gastaut syndrome; Suboxone, a sublingual film formulation of buprenorphine and naloxone for the treatment of opioid dependence; Zuplenz, an oral soluble film formulation of ondansetron for the treatment of nausea and vomiting associated with chemotherapy and post-operative recovery; and Azstarys, a once-daily product for the treatment of attention deficit hyperactivity disorder. Its proprietary product candidates comprise Libervant, a buccal soluble film formulation of diazepam for the treatment of seizures; KYNMOBI, a sublingual film formulation of apomorphine for the treatment of episodic off-periods in Parkinson's disease; and Exservan, an oral soluble film formulation of riluzole for the treatment of amyotrophic lateral sclerosis. The company's proprietary pipeline of complex molecule product includes AQST-108, a sublingual film formulation delivering systemic epinephrine for the treatment of conditions other than anaphylaxis; and Anaphylm, an epinephrine sublingual film for the emergency treatment of allergic reactions, including anaphylaxis. In addition, it develops Adrenaverse, an epinephrine prodrug platform. The company was incorporated in 2004 and is headquartered in Warren, New Jersey.

About Acerus Pharmaceuticals

Acerus Pharmaceuticals Corp. is a pharmaceutical company. The firm is focused on the commercialization and development of prescription products that improve patient experience, with a focus in the field of men’s health. It focuses on therapeutics for urology, andrology, and endocrinology. Its products include Estrace and Natesto. The company was founded by Bruce D. Brydon, Rolf K. Reininghaus and Mark L. Thompson on September 9, 2008 and is headquartered in Mississauga, Canada.