Verastem (NASDAQ:VSTM – Get Free Report) and Nurix Therapeutics (NASDAQ:NRIX – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.
Earnings & Valuation
This table compares Verastem and Nurix Therapeutics”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Verastem | $10.00 million | 31.87 | -$87.37 million | ($3.50) | -1.77 |
| Nurix Therapeutics | $54.55 million | 16.90 | -$193.57 million | ($2.89) | -4.20 |
Verastem has higher earnings, but lower revenue than Nurix Therapeutics. Nurix Therapeutics is trading at a lower price-to-earnings ratio than Verastem, indicating that it is currently the more affordable of the two stocks.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Verastem | N/A | -332.73% | -73.97% |
| Nurix Therapeutics | -354.85% | -53.65% | -38.59% |
Analyst Ratings
This is a breakdown of current recommendations for Verastem and Nurix Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Verastem | 0 | 0 | 9 | 0 | 3.00 |
| Nurix Therapeutics | 0 | 3 | 15 | 0 | 2.83 |
Verastem currently has a consensus target price of $13.88, indicating a potential upside of 124.15%. Nurix Therapeutics has a consensus target price of $30.88, indicating a potential upside of 154.18%. Given Nurix Therapeutics’ higher probable upside, analysts clearly believe Nurix Therapeutics is more favorable than Verastem.
Risk and Volatility
Verastem has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Nurix Therapeutics has a beta of 2.18, indicating that its share price is 118% more volatile than the S&P 500.
Institutional & Insider Ownership
88.4% of Verastem shares are held by institutional investors. 2.2% of Verastem shares are held by company insiders. Comparatively, 7.2% of Nurix Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Nurix Therapeutics beats Verastem on 8 of the 14 factors compared between the two stocks.
About Verastem
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.
About Nurix Therapeutics
Nurix Therapeutics, Inc., a clinical stage biopharmaceutical company, focuses on the discovery, development, and commercialization of small molecule and cell therapies for the treatment of cancer, inflammatory conditions, and other diseases. The company develops NX-2127, an orally bioavailable Bruton's tyrosine kinase (BTK) degrader for the treatment of relapsed or refractory B-cell malignancies; NX-5948, an orally bioavailable BTK degrader for the treatment of relapsed or refractory B-cell malignancies and autoimmune diseases; and NX-1607, an orally bioavailable Casitas B-lineage lymphoma proto-oncogene-B (CBL-B) inhibitor for immuno-oncology indications. It is also developing NX-0479/GS-6791, a IRAK4 degrader for the treatment of rheumatoid arthritis and other inflammatory diseases. The company has a strategic collaboration agreement with Gilead Sciences, Inc., Sanofi S.A., and Seagen Inc. co-development and co-commercialization for multiple drug candidates. The company was formerly known as Nurix Inc. and changed its name to Nurix Therapeutics, Inc. in October 2018. Nurix Therapeutics, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.
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