Critical Comparison: Alvotech (ALVO) versus Its Rivals

Alvotech (NYSE:ALVO) is one of 288 publicly-traded companies in the “Biological products, except diagnostic” industry, but how does it weigh in compared to its competitors? We will compare Alvotech to related companies based on the strength of its institutional ownership, profitability, valuation, dividends, risk, analyst recommendations and earnings.

Volatility & Risk

Alvotech has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500. Comparatively, Alvotech’s competitors have a beta of 1.00, suggesting that their average stock price is 0% less volatile than the S&P 500.

Valuation and Earnings

This table compares Alvotech and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Alvotech	$93.38 million	-$551.73 million	-5.30
Alvotech Competitors	$555.85 million	-$35.05 million	6.49

Alvotech’s competitors have higher revenue and earnings than Alvotech. Alvotech is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and recommmendations for Alvotech and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alvotech	0	1	1	0	2.50
Alvotech Competitors	1425	4541	11850	204	2.60

Alvotech presently has a consensus price target of $12.67, suggesting a potential downside of 1.66%. As a group, “Biological products, except diagnostic” companies have a potential upside of 128.86%. Given Alvotech’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Alvotech has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

50.1% of shares of all “Biological products, except diagnostic” companies are owned by institutional investors. 0.5% of Alvotech shares are owned by insiders. Comparatively, 16.3% of shares of all “Biological products, except diagnostic” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Alvotech and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alvotech	-967.97%	N/A	-68.36%
Alvotech Competitors	-4,410.88%	-222.54%	-44.97%

Summary

Alvotech competitors beat Alvotech on 11 of the 13 factors compared.

About Alvotech

Alvotech, through its subsidiaries, develops and manufactures biosimilar medicines for patients worldwide. It offers biosimilar products in the therapeutic areas of autoimmune, eye, and bone disorders, as well as cancer. The company's lead program is AVT02, a high concentration formulation biosimilar to Humira to treat various inflammatory conditions, including rheumatoid arthritis, psoriatic arthritis, Crohn's disease, ulcerative colitis, plaque psoriasis, and other indications; AVT04, a biosimilar to Stelara to treat various inflammatory conditions comprising psoriatic arthritis, Crohn's disease, ulcerative colitis, plaque psoriasis, and other indications; AVT06, a biosimilar to Eylea to treat various conditions, such as age-related macular degeneration, macular edema, and diabetic retinopathy; and AVT03, a biosimilar to Xgeva and Prolia, which is in the pre-clinical phase to treat prevent bone fracture, spinal cord compression, and the need for radiation or bone surgery in patients with certain types of cancer, as well as prevent bone loss and increase bone mass. In addition, it offers AVT05, a biosimilar to Simponi and Simponi Aria, which is in early phase development to treat various inflammatory conditions, including rheumatoid arthritis, psoriatic arthritis, ulcerative colitis, and other indications; AVT16, a biosimilar to an Entyvio product; AVT23, a biosimilar to Xolair, which is in late-stage development to treat nasal polyps; and AVT33, a biosimilar to an Keytruda product. Alvotech was founded in 2013 and is based in Luxembourg, Luxembourg.