Sarepta Therapeutics (NASDAQ:SRPT – Get Free Report) and Alector (NASDAQ:ALEC – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.
Profitability
This table compares Sarepta Therapeutics and Alector’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sarepta Therapeutics | -13.48% | -1.60% | -0.66% |
| Alector | -850.13% | -531.03% | -44.00% |
Risk and Volatility
Sarepta Therapeutics has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500. Comparatively, Alector has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sarepta Therapeutics | 6 | 5 | 9 | 0 | 2.15 |
| Alector | 2 | 3 | 3 | 0 | 2.12 |
Sarepta Therapeutics currently has a consensus target price of $25.69, suggesting a potential upside of 16.66%. Alector has a consensus target price of $3.62, suggesting a potential upside of 59.69%. Given Alector’s higher possible upside, analysts clearly believe Alector is more favorable than Sarepta Therapeutics.
Valuation and Earnings
This table compares Sarepta Therapeutics and Alector”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sarepta Therapeutics | $2.20 billion | 1.06 | -$713.41 million | ($2.90) | -7.59 |
| Alector | $21.05 million | 12.04 | -$142.93 million | ($1.10) | -2.06 |
Alector has lower revenue, but higher earnings than Sarepta Therapeutics. Sarepta Therapeutics is trading at a lower price-to-earnings ratio than Alector, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
86.7% of Sarepta Therapeutics shares are owned by institutional investors. Comparatively, 85.8% of Alector shares are owned by institutional investors. 6.9% of Sarepta Therapeutics shares are owned by company insiders. Comparatively, 8.3% of Alector shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
About Sarepta Therapeutics
Sarepta Therapeutics, Inc., a commercial-stage biopharmaceutical company, focuses on the discovery and development of RNA-targeted therapeutics, gene therapies, and other genetic therapeutic modalities for the treatment of rare diseases. It offers EXONDYS 51 injection to treat duchenne muscular dystrophy (duchenne) in patients with confirmed mutation of the dystrophin gene that is amenable to exon 51 skipping; VYONDYS 53 for the treatment of duchenne in patients with confirmed mutation of the dystrophin gene that is amenable to exon 53 skipping; AMONDYS 45 for the treatment of duchenne in patients with confirmed mutation of the dystrophin gene; and ELEVIDYS, an adeno-associated virus based gene therapy for the treatment of ambulatory pediatric patients aged 4 through 5 years with duchenne with a confirmed mutation in the duchenne gene. The company is also developing SRP-5051, a peptide conjugated PMO that binds exon 51 of dystrophin pre-mRNA; and SRP-9003, a limb-girdle muscular dystrophies gene therapy program. It has collaboration and license agreements with F. Hoffman-La Roche Ltd; Nationwide Children's Hospital; Genevant Sciences; University of Florida; Dyno Therapeutics; Hansa Biopharma; Duke University; Genethon; and StrideBio. The company was incorporated in 1980 and is headquartered in Cambridge, Massachusetts.
About Alector
Alector, Inc., a clinical stage biopharmaceutical company, develops therapies for the treatment of neurodegeneration diseases. Its products include AL001, an immune activity in the brain with genetic links to multiple neurodegenerative disorders, which is in Phase III clinical trial for the treatment of frontotemporal dementia, Alzheimer's, Parkinson's, and amyotrophic lateral sclerosis diseases; and AL101 that is in Phase I clinical trial for the treatment of neurodegenerative diseases, including Alzheimer's and Parkinson's diseases. The company also offers AL002, a product candidate that is in Phase II clinical trial for the treatment of Alzheimer's disease. Alector, Inc. has a collaboration agreement with Adimab, LLC for the research and development of antibodies; and a strategic collaboration agreement with GlaxoSmithKline plc for the development and commercialization of monoclonal antibodies, such as AL001 and AL101 to treat neurodegenerative diseases. The company was founded in 2013 and is headquartered in South San Francisco, California.
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