Critical Comparison: MusclePharm (MSLP) versus Arbutus Biopharma (ABUS)

MusclePharm (OTCMKTS:MSLP) and Arbutus Biopharma (NASDAQ:ABUS) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares MusclePharm and Arbutus Biopharma’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MusclePharm -7.41% N/A -31.87%
Arbutus Biopharma -986.23% -74.52% -29.00%

Analyst Recommendations

This is a breakdown of recent ratings for MusclePharm and Arbutus Biopharma, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MusclePharm 0 0 0 0 N/A
Arbutus Biopharma 0 3 2 0 2.40

Arbutus Biopharma has a consensus target price of $6.83, indicating a potential upside of 114.88%. Given Arbutus Biopharma’s higher probable upside, analysts plainly believe Arbutus Biopharma is more favorable than MusclePharm.

Institutional and Insider Ownership

28.9% of MusclePharm shares are owned by institutional investors. Comparatively, 43.1% of Arbutus Biopharma shares are owned by institutional investors. 60.7% of MusclePharm shares are owned by insiders. Comparatively, 7.6% of Arbutus Biopharma shares are owned 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.

Risk & Volatility

MusclePharm has a beta of 2.84, suggesting that its share price is 184% more volatile than the S&P 500. Comparatively, Arbutus Biopharma has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500.

Earnings & Valuation

This table compares MusclePharm and Arbutus Biopharma’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MusclePharm $102.15 million 0.08 -$10.97 million N/A N/A
Arbutus Biopharma $5.90 million 30.25 -$57.06 million ($1.02) -3.12

MusclePharm has higher revenue and earnings than Arbutus Biopharma.

Summary

MusclePharm beats Arbutus Biopharma on 6 of the 11 factors compared between the two stocks.

About MusclePharm

MusclePharm Corporation develops, manufactures, markets, and distributes nutritional supplements in the United States and internationally. It offers a range of powders, capsules, tablets, and gels. The company's MusclePharm brand product portfolio include Combat protein powder and Combat crunch protein bars; essentials supplements, such as a BCAA, creatine, glutamine, carnitine, CLA, fish oil, multi-vitamin, and other products; and non-genetically modified organism sports performance products with organic ingredients, plant-based proteins, and natural caffeine sources for use in the various stages of the workout. It also provides FitMiss sports nutrition products, which are designed and formulated primarily for women lifestyle to cover various needs, including weight management, lean muscle mass, body composition, and general health and wellness. MusclePharm Corporation sells its products to various fitness enthusiasts, such as professional, combat sport, weight training, bodybuilding, running, and various team and individual sports, as well as individuals who lead an active lifestyle. The company was founded in 2006 and is headquartered in Burbank, California.

About Arbutus Biopharma

Arbutus Biopharma Corp. is a biopharmaceutical company, engages in discovering, developing and commercializing a cure for patients suffering from chronic Hepatitis B virus infection. The company was founded on October 6, 2005 and is headquartered in Burnaby, Canada.

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