Arch Therapeutics (OTCMKTS:ARTH) vs. Alpha Tau Medical (NASDAQ:DRTS) Head-To-Head Comparison

Arch Therapeutics (OTCMKTS:ARTH) and Alpha Tau Medical (NASDAQ:DRTS) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares Arch Therapeutics and Alpha Tau Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arch Therapeutics	-8,257.70%	N/A	-730.22%
Alpha Tau Medical	N/A	-38.62%	-29.89%

Volatility & Risk

Arch Therapeutics has a beta of 3.46, meaning that its share price is 246% more volatile than the S&P 500. Comparatively, Alpha Tau Medical has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Institutional and Insider Ownership

6.9% of Arch Therapeutics shares are held by institutional investors. Comparatively, 2.7% of Alpha Tau Medical shares are held by institutional investors. 4.5% of Arch Therapeutics shares are held by insiders. Comparatively, 39.5% of Alpha Tau Medical shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Arch Therapeutics and Alpha Tau Medical”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arch Therapeutics	$80,000.00	13.19	-$6.98 million	N/A	N/A
Alpha Tau Medical	N/A	N/A	-$29.16 million	($0.43)	-7.30

Arch Therapeutics has higher revenue and earnings than Alpha Tau Medical.

Analyst Ratings

This is a summary of current ratings and target prices for Arch Therapeutics and Alpha Tau Medical, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arch Therapeutics	0	0	0	0	0.00
Alpha Tau Medical	0	0	2	0	3.00

Alpha Tau Medical has a consensus price target of $8.00, indicating a potential upside of 154.78%. Given Alpha Tau Medical’s stronger consensus rating and higher probable upside, analysts clearly believe Alpha Tau Medical is more favorable than Arch Therapeutics.

Summary

Alpha Tau Medical beats Arch Therapeutics on 6 of the 11 factors compared between the two stocks.

About Arch Therapeutics

Arch Therapeutics, Inc., together with its subsidiaries, operates as a biotechnology company in the United States. It develops and markets products based on its AC5 self-assembling technology platform to stop bleeding and control leaking, as well as manages wounds during surgery, trauma, and interventional care or from disease. The company's flagship products include AC5 advanced wound system and AC5 topical hemostat, which are intended for skin applications, such as management of complicated chronic wounds or acute surgical wounds. It is also involved in the development of AC5-G for gastrointestinal endoscopic procedures, and AC5-V and AC5 surgical hemostat for hemostasis inside the body. The company was founded in 2006 and is based in Framingham, Massachusetts.

About Alpha Tau Medical

Alpha Tau Medical Ltd., a clinical-stage oncology therapeutics company, engages in research, development, and commercialization of diffusing alpha-emitters radiation therapy (Alpha DaRT) for the treatment of solid cancer In Israel and the United States. Its Alpha-DaRT technology used in clinical trials for skin, oral, pancreatic, prostate, and breast cancers; and preclinical studies for brain, hepatic cell carcinoma, glioblastoma multiforme, lung cancer, and others. The company was incorporated in 2015 and is headquartered in Jerusalem, Israel.