Alvotech (NASDAQ:ALVO – Get Free Report) and Applied Therapeutics (NASDAQ:APLT – Get Free Report) are both small-cap healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Alvotech and Applied Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alvotech | 1 | 2 | 4 | 0 | 2.43 |
| Applied Therapeutics | 1 | 2 | 0 | 0 | 1.67 |
Alvotech presently has a consensus target price of $8.50, indicating a potential upside of 70.00%. Applied Therapeutics has a consensus target price of $1.00, indicating a potential upside of 870.87%. Given Applied Therapeutics’ higher probable upside, analysts plainly believe Applied Therapeutics is more favorable than Alvotech.
Institutional and Insider Ownership
98.3% of Applied Therapeutics shares are held by institutional investors. 0.5% of Alvotech shares are held by company insiders. Comparatively, 1.6% of Applied Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Alvotech and Applied Therapeutics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alvotech | $588.90 million | 2.56 | $27.92 million | ($0.61) | -8.20 |
| Applied Therapeutics | $1.00 million | 15.86 | -$105.62 million | ($0.10) | -1.03 |
Alvotech has higher revenue and earnings than Applied Therapeutics. Alvotech is trading at a lower price-to-earnings ratio than Applied Therapeutics, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Alvotech has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500. Comparatively, Applied Therapeutics has a beta of 2.08, meaning that its share price is 108% more volatile than the S&P 500.
Profitability
This table compares Alvotech and Applied Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alvotech | -36.31% | N/A | -11.73% |
| Applied Therapeutics | N/A | -340.84% | -175.00% |
Summary
Applied Therapeutics beats Alvotech on 8 of the 14 factors compared between the two stocks.
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.
About Applied Therapeutics
Applied Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in the development of a pipeline of novel product candidates against validated molecular targets in indications of high unmet medical need in the United States. The company's lead product candidate is AT-007 (also called govorestat) that has completed phase 3 for the treatment of galactosemia in healthy volunteers and adults, in pediatric clinical study for the treatment of galactosemia in kids, for treating enzyme sorbitol dehydrogenase, and for the treatment of phosphomannomutase enzyme-CDG. It also develops AT-001 (also called caficrestat) that is in phase 3 clinical trials to treat diabetic cardiomyopathy, as well as for the treatment of diabetic peripheral neuropathy; and AT-003, which is in preclinical studies for the treatment diabetic retinopathy. The company has exclusive license and supply agreement with Mercury Pharma Group Limited to commercialize drug products containing AT-007. Applied Therapeutics, Inc. was incorporated in 2016 and is headquartered in New York, New York.
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