Head to Head Analysis: argenx (NASDAQ:ARGX) and Acumen Pharmaceuticals (NASDAQ:ABOS)

Acumen Pharmaceuticals (NASDAQ:ABOS) and argenx (NASDAQ:ARGX) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Profitability

This table compares Acumen Pharmaceuticals and argenx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Acumen Pharmaceuticals	N/A	-32.99%	-27.99%
argenx	-2.11%	-1.45%	-1.29%

Institutional & Insider Ownership

71.0% of Acumen Pharmaceuticals shares are held by institutional investors. Comparatively, 60.3% of argenx shares are held by institutional investors. 7.1% of Acumen Pharmaceuticals shares are held by company insiders. Comparatively, 2.4% of argenx shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Acumen Pharmaceuticals has a beta of 0.02, suggesting that its share price is 98% less volatile than the S&P 500. Comparatively, argenx has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.

Valuation and Earnings

This table compares Acumen Pharmaceuticals and argenx”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acumen Pharmaceuticals	N/A	N/A	-$52.37 million	($1.38)	-1.23
argenx	$1.86 billion	21.09	-$295.05 million	($0.88)	-737.80

Acumen Pharmaceuticals has higher earnings, but lower revenue than argenx. argenx is trading at a lower price-to-earnings ratio than Acumen Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Acumen Pharmaceuticals and argenx, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acumen Pharmaceuticals	0	0	2	1	3.33
argenx	0	3	18	1	2.91

Acumen Pharmaceuticals currently has a consensus target price of $9.33, suggesting a potential upside of 449.02%. argenx has a consensus target price of $645.61, suggesting a potential downside of 0.56%. Given Acumen Pharmaceuticals’ stronger consensus rating and higher possible upside, equities analysts plainly believe Acumen Pharmaceuticals is more favorable than argenx.

Summary

Acumen Pharmaceuticals beats argenx on 7 of the 13 factors compared between the two stocks.

About Acumen Pharmaceuticals

Acumen Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops targeted therapies for the treatment of Alzheimer’s disease. The company focuses on advancing a targeted immunotherapy drug candidate sabirnetug (ACU193), a recombinant humanized immunoglobulin gamma 2 that completed Phase I clinical trial to target soluble amyloid-beta oligomers. The company has a license agreement with Lonza Sales AG to manufacture and commercialize sabirnetug; and a collaboration and license agreement with Halozyme, Inc. for the development of a subcutaneous formulation of sabirnetug. Acumen Pharmaceuticals, Inc. was incorporated in 1996 and is headquartered in Charlottesville, Virginia.

About argenx

argenx SE, a biotechnology company, engages in the developing of various therapies for the treatment of autoimmune diseases in the United States, Japan, Europe, Middle East, Africa, and China. Its lead product candidate is efgartigimod for the treatment of patients with myasthenia gravis, immune thrombocytopenia, pemphigus vulgaris, generalized myasthenia gravis, chronic inflammatory demyelinating polyneuropathy, thyroid eye disease, bullous pemphigoid, myositis, primary sjögren’s syndrome, post-covid postural orthostatic tachycardia syndrome, membranous nephropathy, lupus nephropathy, anca-associated vasculitis, and antibody mediated rejection; ENHANZE SC; Empasiprubart for multifocal motor neuropath, delayed graft function, and dermatomyositis; and ARGX-119 for congenital myasthenic syndrome and amyotrophic lateral sclerosis. The company is developing ARGX-213 targets FcRn; ARGX-121 and ARGX-220 targets immune system; ARGX-109 targets IL-6; ARGX-118 for inflammation; and ARGX-109, as well as cusatuzumab, ARGX-112, ARGX-114, and ARGX-115. It owns VYVGART; VYVGART HYTRULO; VYVDURA; ARGENX; ABDEG; NHANCE; SIMPLE ANTIBODY; and ARGENXMEDHUB. The company has strategic partnership with AbbVie S.À.R.L., Zai Lab Limited, and LEO Pharma A/S; and collaboration and license agreement with Genor Biopharma Co. Ltd, Université Catholique de Louvain, Sopartec S.A., NYU Langone Health, Leiden University Medical Center, AgomAb Therapeutics NV, Broteio Pharma B.V., VIB vzw, University of Texas, BioWa, Inc., and Shire International GmbH. It has collaboration agreement with Genmab A/S to discover, develop, and commercialize novel therapeutic antibodies with applications in immunology and oncology, as well as a strategic collaboration with IQVIA Holdings Inc. to provide safety systems and services. argenx SE was incorporated in 2008 and is based in Amsterdam, the Netherlands.