Acrivon Therapeutics (NASDAQ:ACRV) vs. Biomea Fusion (NASDAQ:BMEA) Critical Contrast

Acrivon Therapeutics (NASDAQ:ACRV) and Biomea Fusion (NASDAQ:BMEA) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Institutional & Insider Ownership

71.6% of Acrivon Therapeutics shares are held by institutional investors. Comparatively, 96.7% of Biomea Fusion shares are held by institutional investors. 8.5% of Acrivon Therapeutics shares are held by insiders. Comparatively, 27.6% of Biomea Fusion shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Acrivon Therapeutics and Biomea Fusion”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acrivon Therapeutics	N/A	N/A	-$60.39 million	($2.88)	-2.64
Biomea Fusion	N/A	N/A	-$117.25 million	($3.57)	-3.07

Biomea Fusion is trading at a lower price-to-earnings ratio than Acrivon Therapeutics, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Acrivon Therapeutics has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Biomea Fusion has a beta of -0.43, suggesting that its stock price is 143% less volatile than the S&P 500.

Profitability

This table compares Acrivon Therapeutics and Biomea Fusion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Acrivon Therapeutics	N/A	-47.31%	-43.10%
Biomea Fusion	N/A	-91.86%	-76.56%

Analyst Recommendations

This is a summary of recent ratings and price targets for Acrivon Therapeutics and Biomea Fusion, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acrivon Therapeutics	0	0	6	0	3.00
Biomea Fusion	0	2	8	2	3.00

Acrivon Therapeutics currently has a consensus target price of $23.83, suggesting a potential upside of 213.60%. Biomea Fusion has a consensus target price of $29.40, suggesting a potential upside of 168.00%. Given Acrivon Therapeutics’ higher probable upside, equities analysts clearly believe Acrivon Therapeutics is more favorable than Biomea Fusion.

Summary

Acrivon Therapeutics beats Biomea Fusion on 7 of the 11 factors compared between the two stocks.

About Acrivon Therapeutics

Acrivon Therapeutics, Inc., a clinical stage biopharmaceutical company, engages in developing oncology medicines for the patients whose tumors are predicted to be sensitive to each specific medicine by utilizing its proteomics-based patient responder identification platform. The company's Acrivon Predictive Precision Proteomics, a precision medicine platform enables the creation of drug specific proprietary OncoSignature companion diagnostics that are used to identify the patients to benefit from its drug candidates. Its lead clinical candidate is ACR-368, a selective small molecule inhibitor targeting CHK1 and CHK2, which is in Phase II clinical trial across various tumor types, including platinum-resistant ovarian, endometrial, and bladder cancer. The company is also developing its preclinical stage pipeline programs targeting critical nodes in the DNA damage response, or DDR, pathways; and ACR-2316, a dual WEE1/PKMYT1 inhibitor. Acrivon Therapeutics, Inc. was incorporated in 2018 and is based in Watertown, Massachusetts.

About Biomea Fusion

Biomea Fusion, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery and development of covalent small molecule drugs to treat patients with genetically defined cancers and metabolic diseases. Its lead product candidate is BMF-219, a covalent inhibitor of menin for treating patients with liquid and solid tumors and type 2 diabetes. The company was incorporated in 2017 and is headquartered in Redwood City, California.