Financial Comparison: Erasca (NASDAQ:ERAS) vs. NLS Pharmaceutics (NASDAQ:NLSP)

NLS Pharmaceutics (NASDAQ:NLSP – Get Free Report) and Erasca (NASDAQ:ERAS – Get Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Profitability

This table compares NLS Pharmaceutics and Erasca’s net margins, return on equity and return on assets.

Earnings & Valuation

This table compares NLS Pharmaceutics and Erasca”s gross revenue, earnings per share and valuation.

Risk & Volatility

NLS Pharmaceutics has a beta of -0.57, indicating that its share price is 157% less volatile than the S&P 500. Comparatively, Erasca has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.

Insider and Institutional Ownership

67.8% of Erasca shares are held by institutional investors. 16.4% of NLS Pharmaceutics shares are held by insiders. Comparatively, 21.5% of Erasca shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for NLS Pharmaceutics and Erasca, as reported by MarketBeat.

Erasca has a consensus price target of $6.00, suggesting a potential upside of 118.18%. Given Erasca’s higher possible upside, analysts clearly believe Erasca is more favorable than NLS Pharmaceutics.

Summary

Erasca beats NLS Pharmaceutics on 5 of the 8 factors compared between the two stocks.

About NLS Pharmaceutics

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NLS Pharmaceutics AG, a clinical-stage biopharmaceutical company, engages in the discovery and development of therapies for patients with rare and complex central nervous system disorders. The company is focusing on the development of treatments for narcolepsy, idiopathic hypersomnia, and other rare sleep disorders, as well as neurodevelopmental disorders, such as attention deficit hyperactivity disorder (ADHD). Its lead product candidates include Quilience to treat excessive daytime sleepiness and cataplexy; and Nolazol for the treatment of ADHD. The company also developing NLS-4, a selective dopamine reuptake inhibitor to prevent rare sleep disorders; NLS-3, a repurposed reverse ester of methylphenidate for treatment of ADHD; NLS-8, a melatonin ML1A receptor agonist, improved scopolamine-induced amnesia; NLS-11, a norepinephrine and dopamine reuptake inhibitor and muscarinic M1, M2, M3 receptor antagonist; and NLS-12, a norepinephrine and dopamine reuptake inhibitor and muscarinic M4 receptor antagonist. NLS Pharmaceutics AG was incorporated in 2015 and is based in Zurich, Switzerland.

About Erasca

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Erasca, Inc., a clinical-stage precision oncology company, focuses on discovering, developing, and commercializing therapies for patients with RAS/MAPK pathway-driven cancers. The company's lead product is naporafenib which is in phase 1b trial for patients with RAS Q16X solid tumors and plans to initiate a pivotal Phase 3 trial for patients with NRASm melanoma. It also develops ERAS-007, an oral inhibitor of ERK1/2 for the treatment of non-small cell lung and colorectal cancer, and advanced gastrointestinal malignancies; and ERAS-601, an oral SHP2 inhibitor for patients with advanced or metastatic solid tumors. In addition, it is developing ERAS-801, a central nervous system-penetrant EGFR inhibitor which is in phase 1 clinical trials for the treatment of patients with recurrent glioblastoma multiforme. The company entered into license agreement with Novartis to develop, manufacture, use, and commercialize naporafenib; Katmai Pharmaceuticals, Inc. to develop, manufacture, use, and commercialize ERAS-801 and certain other related compounds; and NiKang Therapeutics, Inc. to develop and commercialize ERAS-601 and certain other related compounds. Erasca, Inc. was incorporated in 2018 and is headquartered in San Diego, California.