Adverum Biotechnologies (NASDAQ: ADVM) and Selecta Biosciences (NASDAQ:SELB) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Insider & Institutional Ownership
30.1% of Adverum Biotechnologies shares are held by institutional investors. Comparatively, 53.5% of Selecta Biosciences shares are held by institutional investors. 7.8% of Adverum Biotechnologies shares are held by company insiders. Comparatively, 41.9% of Selecta Biosciences shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Adverum Biotechnologies and Selecta Biosciences’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Adverum Biotechnologies has a beta of 2.54, meaning that its share price is 154% more volatile than the S&P 500. Comparatively, Selecta Biosciences has a beta of -6, meaning that its share price is 700% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Adverum Biotechnologies and Selecta Biosciences, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Adverum Biotechnologies presently has a consensus price target of $3.50, suggesting a potential downside of 4.11%. Selecta Biosciences has a consensus price target of $28.33, suggesting a potential upside of 31.23%. Given Selecta Biosciences’ stronger consensus rating and higher probable upside, analysts plainly believe Selecta Biosciences is more favorable than Adverum Biotechnologies.
Valuation and Earnings
This table compares Adverum Biotechnologies and Selecta Biosciences’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Adverum Biotechnologies||$1.81 million||87.29||-$50.59 million||($1.54)||-2.37|
|Selecta Biosciences||$4.14 million||115.12||-$51.16 million||($2.87)||-7.52|
Adverum Biotechnologies has higher revenue, but lower earnings than Selecta Biosciences. Selecta Biosciences is trading at a lower price-to-earnings ratio than Adverum Biotechnologies, indicating that it is currently the more affordable of the two stocks.
Selecta Biosciences beats Adverum Biotechnologies on 8 of the 13 factors compared between the two stocks.
Adverum Biotechnologies Company Profile
Adverum Biotechnologies, Inc., formerly Avalanche Biotechnologies, Inc., is a gene therapy company. The Company is engaged in discovering and developing medicines to patients suffering from chronic or debilitating disease. The Company operates and manages its business in the segment of developing and commercializing gene therapeutics. It focuses on diseases with unmet medical need, including ophthalmic diseases, such as wet age-related macular degeneration (AMD), as well as rare genetic diseases. The Company’s product candidates include AVA-101 and AVA-201 for treatment of Wet AMD; AVA-322 and AVA-323 for the treatment of Color Vision Deficiency, and AVA-311 for the treatment of Juvenile X-linked Retinoschisis. It has generated human proof-of-concept data for AVA-101 in a Phase I trial with over eight wet AMD subjects conducted at Lions Eye Institute (LEI) in Australia. It is developing AVA-322 and AVA-323 for the treatment of color vision deficiency (CVD).
Selecta Biosciences Company Profile
Selecta Biosciences, Inc. is a clinical-stage biopharmaceutical company. The Company using its synthetic vaccine particle (SVP) technology to discover and develop targeted therapies that are designed to modulate the immune system to treat rare and serious diseases. The Company is engaged in the research and development of nanoparticle immunomodulatory drugs for the treatment and prevention of human diseases. Its product candidates are in various stages of clinical and preclinical development. Its SVP technology encapsulates an immunomodulator in biodegradable nanoparticles to induce antigen-specific immune tolerance to mitigate the formation of anti-drug antibodies (ADAs) in response to life-sustaining biologic drugs. The Company’s lead product candidate, SEL-212, is a combination of a therapeutic enzyme and its SVP technology designed to be the biologic treatment for gout.
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