Corvus Pharmaceuticals (NASDAQ:CRVS – Get Free Report) and Merck KGaA (OTCMKTS:MKGAF – Get Free Report) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.
Risk and Volatility
Corvus Pharmaceuticals has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Merck KGaA has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.
Earnings and Valuation
This table compares Corvus Pharmaceuticals and Merck KGaA”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Corvus Pharmaceuticals | N/A | N/A | -$27.03 million | ($0.45) | -20.51 |
| Merck KGaA | $22.72 billion | 0.93 | $3.06 billion | $6.81 | 23.99 |
Profitability
This table compares Corvus Pharmaceuticals and Merck KGaA’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Corvus Pharmaceuticals | N/A | -53.99% | -44.75% |
| Merck KGaA | 12.60% | 10.17% | 5.74% |
Institutional & Insider Ownership
46.6% of Corvus Pharmaceuticals shares are owned by institutional investors. Comparatively, 0.1% of Merck KGaA shares are owned by institutional investors. 31.3% of Corvus Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and price targets for Corvus Pharmaceuticals and Merck KGaA, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Corvus Pharmaceuticals | 0 | 0 | 3 | 1 | 3.25 |
| Merck KGaA | 0 | 0 | 0 | 1 | 4.00 |
Corvus Pharmaceuticals currently has a consensus price target of $10.83, indicating a potential upside of 17.37%. Given Corvus Pharmaceuticals’ higher possible upside, equities analysts plainly believe Corvus Pharmaceuticals is more favorable than Merck KGaA.
Summary
Merck KGaA beats Corvus Pharmaceuticals on 8 of the 13 factors compared between the two stocks.
About Corvus Pharmaceuticals
Corvus Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, focuses on the development and commercialization of immune modulator product candidates to treat solid cancers, T cell lymphomas, autoimmune, allergic, and infectious diseases. Its lead product candidate is soquelitinib (CPI-818), a selective covalent inhibitor of interleukin 2 inducible T cell kinase (ITK), which is in a multi-center Phase 1/1b clinical trial for the treatment of peripheral T cell lymphoma, solid tumors, and atopic dermatitis. The company is also developing ciforadenant (CPI-444), an oral small molecule antagonist of the A2A receptor that is in Phase 2 clinical trial for the treatment of metastatic renal cell cancer; and mupadolimab (CPI-006), a humanized monoclonal antibody, which is in Phase 1b clinical trial for the treatment of non-small cell lung cancer and head and neck cancer. In addition, it is developing CPI-182, an antibody designed to block inflammation and myeloid suppression that is in investigational new drug application-enabling studies, as well as CPI-935, an adenosine A2B receptor antagonist to prevent fibrosis. Corvus Pharmaceuticals, Inc. has a license afreemnt with Monash University to research, develop, and commercialize certain antibodies directed to CXCR2 for the treatment of human diseases; and Vernalis (R&D) Limited to develop, manufacture, and commercialize products containing certain adenosine receptor antagonists, including ciforadenant, as well as strategic collaboration with Angel Pharmaceuticals Co. Ltd. for the development and commercialization of mupadolimab. Corvus Pharmaceuticals, Inc. was incorporated in 2014 and is based in Burlingame, California.
About Merck KGaA
Merck KGaA operates as a science and technology company in Germany. It operates through Life Science, Healthcare, and Electronics segments. The company's Life Science segment offers tools, chemicals, and equipment for academic labs, biotech, and pharmaceutical manufacturers, as well as industrial sector. This segment provides drug manufacturers with process development expertise and technologies, such as continuous bioprocessing; testing kits and services; reagents and services; testing solutions that analyze air, water, and soil; and testing and tools, as well as products that help test nutritional value and identify quality inconsistencies. Its Healthcare segment discovers, develops, manufacturers, and markets prescription drugs and biopharmaceuticals for the treatment of oncology, neurology and immunology, fertility, endocrinology, as well as cardiovascular, diabetes, thyroid disorders, and multiple sclerosis; general medicines; and injection device and disease monitoring software. The Electronics segment supplies materials for the semiconductor and display industries and surface design, such as delivery systems and services, as well as surface solutions, including cosmetics, effect pigments, and functional solutions. In addition, it has in-licensing agreement with Debiopharm International SA for developing and commercializing drug candidates for the treatment of head and neck cancer; Jiangsu Hengrui Pharmaceuticals Co. Ltd. for developing, manufacturing, and commercializing drug candidates for the treatment of metastatic colorectal cancer; and Abbisko Therapeutics Co. Ltd. for developing and commercializing of drug candidates for the treatment of tenosynovial giant cell tumor, as well as license and collaboration agreement with Merck KGaA to discover two targeted protein degraders against critical oncogenic proteins. The company was founded in 1668 and is headquartered in Darmstadt, Germany. Merck KGaA operates as a subsidiary of E. Merck KGaA.
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