Immunic (NASDAQ:IMUX) vs. Acasti Pharma (NASDAQ:ACST) Critical Analysis

Immunic (NASDAQ:IMUX) and Acasti Pharma (NASDAQ:ACST) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Insider and Institutional Ownership

51.8% of Immunic shares are owned by institutional investors. Comparatively, 6.1% of Acasti Pharma shares are owned by institutional investors. 3.0% of Immunic shares are owned by insiders. Comparatively, 13.5% of Acasti Pharma shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Immunic and Acasti Pharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Immunic	N/A	-161.27%	-116.07%
Acasti Pharma	N/A	-13.61%	-11.56%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Immunic and Acasti Pharma, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Immunic	0	0	5	2	3.29
Acasti Pharma	0	0	2	0	3.00

Immunic currently has a consensus target price of $11.20, suggesting a potential upside of 754.96%. Acasti Pharma has a consensus target price of $10.00, suggesting a potential upside of 196.74%. Given Immunic’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Immunic is more favorable than Acasti Pharma.

Volatility and Risk

Immunic has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500. Comparatively, Acasti Pharma has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.

Earnings and Valuation

This table compares Immunic and Acasti Pharma”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Immunic	N/A	N/A	-$93.61 million	($1.50)	-0.87
Acasti Pharma	N/A	N/A	-$12.85 million	($1.44)	-2.34

Acasti Pharma is trading at a lower price-to-earnings ratio than Immunic, indicating that it is currently the more affordable of the two stocks.

Summary

Immunic beats Acasti Pharma on 7 of the 12 factors compared between the two stocks.

About Immunic

Immunic, Inc., a biotechnology company, develops a pipeline of selective oral immunology therapies for the treatment of chronic inflammatory and autoimmune diseases in the United States and Germany. Its lead development program is IMU-838, which is in Phase 3 clinical trial, for treatment of multiple sclerosis, including relapsing and progressive multiple sclerosis; and moderate-to-severe ulcerative colitis. The company is also developing IMU-856, which is entering Phase 2 clinical trial, for the restoration of the intestinal barrier function in patients suffering from gastrointestinal diseases, such as celiac disease, inflammatory bowel disease, short bowel syndrome, irritable bowel syndrome with diarrhea, and other intestinal barrier function diseases; and IMU-381, which is in preclinical trial, for the treatment of gastrointestinal diseases. Immunic, Inc. was founded in 2016 and is headquartered in New York, New York.

About Acasti Pharma

Acasti Pharma Inc. engages in the development and commercialization of pharmaceutical products for rare and orphan diseases in Canada. The company's lead product candidate is the GTX-104, an intravenous infusion to treat subarachnoid hemorrhage. It also develops GTX-102, an oral mucosal spray for the treatment of ataxia-telangiectasia; and GTX-101, a topical bioadhesive film-forming bupivacaine spray for postherpetic neuralgia. The company was incorporated in 2002 and is headquartered in Laval, Canada.