Critical Review: Forward Pharma A/S (FWP) & Merus (MRUS)

Forward Pharma A/S (NASDAQ:FWP) and Merus (NASDAQ:MRUS) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for Forward Pharma A/S and Merus, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Forward Pharma A/S 0 0 0 0 N/A
Merus 0 1 4 0 2.80



Merus has a consensus target price of $24.80, suggesting a potential upside of 50.76%. Given Merus’ higher possible upside, analysts plainly believe Merus is more favorable than Forward Pharma A/S.

Institutional & Insider Ownership

20.8% of Forward Pharma A/S shares are held by institutional investors. Comparatively, 53.1% of Merus shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Forward Pharma A/S has a beta of 2.68, suggesting that its share price is 168% more volatile than the S&P 500. Comparatively, Merus has a beta of -0.06, suggesting that its share price is 106% less volatile than the S&P 500.

Profitability

This table compares Forward Pharma A/S and Merus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Forward Pharma A/S N/A N/A N/A
Merus -77.61% -40.84% -16.40%

Valuation & Earnings

This table compares Forward Pharma A/S and Merus’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Forward Pharma A/S $1.25 billion 0.04 -$8.72 million N/A N/A
Merus $37.14 million 10.08 -$28.66 million ($1.84) -8.94

Forward Pharma A/S has higher revenue and earnings than Merus.

Summary

Forward Pharma A/S beats Merus on 6 of the 10 factors compared between the two stocks.

About Forward Pharma A/S

Forward Pharma A/S operates as a biopharmaceutical company. The company focuses on developing FP187, a proprietary formulation of dimethyl fumarate used for the treatment of various inflammatory and neurological indications. Forward Pharma A/S was founded in 2005 and is headquartered in Copenhagen, Denmark.

About Merus

Merus N.V., a clinical-stage immuno-oncology company, engages in developing bispecific antibody therapeutics. Its bispecific antibody candidate pipeline includes MCLA-128, which is in a Phase II clinical trial for the treatment of patients with metastatic breast cancer; and Phase I/II study for treating gastric, ovarian, endometrial, and non-small cell lung cancers. The company is also developing MCLA-117 that is in Phase I clinical trial for the treatment of patients with acute myeloid leukemia; and MCLA-158, which is in a Phase I clinical trial for treating metastatic colorectal cancer. In addition, its preclinical development stage bispecific antibody candidates include MCLA-145, which is being developed in collaboration with Incyte Corporation; and other preclinical candidates in various stages of development. Merus N.V. has collaboration with the Integral Molecular for discovering MAbs against structurally complex proteins; and Lipoparticles, virus-like particles displaying high concentrations of membrane proteins. The company was founded in 2003 and is headquartered in Utrecht, the Netherlands.

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