Merus Story

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MRUS -- USA Stock  

USD 24.55  1.24  5.32%

It looks like Dynavax Technologies will continue to recover much faster as its share price surged up 1.84% today to Merus N's 28.7748%. As many rational traders are trying to avoid healthcare space, it makes sense to sum up Merus N V a little further and understand how it stands against Dynavax Technologies and other similar entities. We are going to discuss some of the competitive aspects of both Merus and Dynavax.
Published over a week ago
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What should I exit first Merus (NASDAQ:MRUS) or Dynavax Technologies?
By analyzing existing basic indicators between Merus N and Dynavax, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Dynavax with a short position in Merus N. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Merus N has an asset utilization ratio of 41.62 percent. This connotes that the company is making $0.42 for each dollar of assets. An increasing asset utilization means that Merus N V is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Merus or Precision is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Merus N's Liquidity

Merus N financial leverage refers to using borrowed capital as a funding source to finance Merus N V ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Merus N financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Merus N's total debt and its cash.

Correlation Between Merus and Precision BioSciences

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Merus N together with similar or unrelated positions with a negative correlation. For example, you can also add Precision BioSciences to your portfolio. If Precision BioSciences is not perfectly correlated to Merus N it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Merus N for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between MRUS and DTIL for more information.

Another Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Merus N revenue. Based on the latest financial disclosure, Merus N V reported 28.72 M of revenue. This is 99.62% lower than that of the Healthcare sector and 96.13% lower than that of the Biotechnology industry. The revenue for all United States stocks is 99.7% higher than that of Merus N. As for Dynavax Technologies we see revenue of 37.57 M, which is 94.94% lower than that of the Biotechnology

Sector
742.9 M
MRUS28.72 Million3.55
Sector742.91 Million91.81
DVAX37.57 Million4.64

Will Merus N growth be reasonable after the spike?

Kurtosis is down to 1.42. It may connote a possible volatility fall. Merus N V currently demonstrates below-verage downside deviation. It has Information Ratio of 0.09 and Jensen Alpha of 0.39. However, we do advice investors to further question Merus N V expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Bottom Line On Merus N V

While some other companies within the biotechnology industry are still a little expensive, even after the recent corrections, Merus N may offer a potential longer-term growth to retail investors. To conclude, as of the 8th of January 2021, we believe that at this point, Merus N is fairly valued with very small chance of distress within the next 2 years. Our primary buy vs. sell advice on the enterprise is Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Merus N V. Please refer to our Terms of Use for any information regarding our disclosure principles.

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