Arcellx (NASDAQ:ACLX) vs. Prenetics Global (NASDAQ:PRE) Critical Analysis

Prenetics Global (NASDAQ:PRE) and Arcellx (NASDAQ:ACLX) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

Analyst Ratings

This is a summary of recent recommendations and price targets for Prenetics Global and Arcellx, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prenetics Global	1	0	1	0	2.00
Arcellx	1	1	7	1	2.80

Prenetics Global presently has a consensus target price of $32.00, indicating a potential upside of 135.90%. Arcellx has a consensus target price of $115.50, indicating a potential upside of 29.15%. Given Prenetics Global’s higher possible upside, analysts clearly believe Prenetics Global is more favorable than Arcellx.

Risk & Volatility

Prenetics Global has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, Arcellx has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500.

Profitability

This table compares Prenetics Global and Arcellx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prenetics Global	-64.27%	-28.77%	-22.55%
Arcellx	-607.01%	-51.13%	-33.09%

Insider and Institutional Ownership

25.0% of Prenetics Global shares are held by institutional investors. Comparatively, 96.0% of Arcellx shares are held by institutional investors. 8.4% of Arcellx shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Prenetics Global and Arcellx”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prenetics Global	$30.62 million	7.46	-$46.30 million	($2.46)	-5.51
Arcellx	$107.94 million	47.90	-$107.35 million	($3.93)	-22.76

Prenetics Global has higher earnings, but lower revenue than Arcellx. Arcellx is trading at a lower price-to-earnings ratio than Prenetics Global, indicating that it is currently the more affordable of the two stocks.

Summary

Prenetics Global beats Arcellx on 8 of the 15 factors compared between the two stocks.

About Prenetics Global

Prenetics Global Limited, a genomics-driven health sciences company, engages in revolutionizing prevention, early detection, and treatment. It offers CircleDNA, a prevention arm that uses whole exome sequencing to offer comprehensive consumer DNA test. The company also, through its joint venture, Insighta, engages in pioneering multi-cancer early detection technologies. In addition, the company, through its equity interests in ACT Genomics Holdings Company Limited, is involved in genomic profiling of solid tumors through ACTOnco. Prenetics Global Limited was founded in 2007 and is based in Quarry Bay, Hong Kong.

About Arcellx

Arcellx, Inc., together with its subsidiary, engages in the development of various immunotherapies for patients with cancer and other incurable diseases in the United States. The company’s lead ddCAR product candidate is anitocabtagene autoleucel, which is in phase 2 clinical trial for the treatment of patients with relapsed or refractory multiple myeloma (rrMM). It also develops ACLX-001, a product candidate in Phase 1 clinical trials targeting BCMA to treat rrMM; and ACLX-002, which is in Phase 1 clinical trials that targets CD123 for treating relapsed or refractory acute myeloid leukemia (AML) and myelodysplastic syndrome (MDS). In addition, the company’s preclinical product includes ACLX-003 for the treatment of AML and MDS. Further, it focuses on the development of product candidates for solid tumor programs. It has a strategic alliance with Kite Pharma, Inc. to co-develop and co-commercialize anitocabtagene autoleucel. The company was formerly known as Encarta Therapeutics, Inc. and changed its name to Arcellx, Inc. in January 2016. Arcellx, Inc. was incorporated in 2014 and is headquartered in Redwood City, California.