Alector (NASDAQ:ALEC) and Jounce Therapeutics (NASDAQ:JNCE) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.
Insider and Institutional Ownership
50.0% of Alector shares are owned by institutional investors. Comparatively, 70.6% of Jounce Therapeutics shares are owned by institutional investors. 34.4% of Alector shares are owned by company insiders. Comparatively, 44.0% of Jounce Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Alector and Jounce Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Alector and Jounce Therapeutics’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alector||$27.51 million||48.85||-$52.25 million||($4.62)||-4.22|
|Jounce Therapeutics||$65.20 million||4.22||-$27.38 million||($0.84)||-9.86|
Jounce Therapeutics has higher revenue and earnings than Alector. Jounce Therapeutics is trading at a lower price-to-earnings ratio than Alector, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Alector and Jounce Therapeutics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Alector presently has a consensus price target of $27.00, indicating a potential upside of 38.46%. Given Alector’s stronger consensus rating and higher probable upside, analysts plainly believe Alector is more favorable than Jounce Therapeutics.
Jounce Therapeutics beats Alector on 8 of the 13 factors compared between the two stocks.
Alector, Inc., a clinical stage biotechnology company, focuses on developing therapies that harness the immune system to cure neurodegenerative diseases. Its products in Phase I clinical trial include AL001, a humanized recombinant monoclonal antibody for the treatment of frontotemporal dementia; and AL002 for the treatment of Alzheimer's disease. The company's preclinical stage products comprise AL101 for the treatment of multiple neurodegenerative disorders; and AL003 for the treatment of Alzheimer's disease. It also has 10 programs under research and development stage. The company was founded in 2013 and is headquartered in South San Francisco, California.
About Jounce Therapeutics
Jounce Therapeutics, Inc., a clinical-stage immunotherapy company, develops therapies for the treatment of cancer. The company offers vopratelimab, a clinical-stage monoclonal antibody that binds to and activates the Inducible T cell CO-Stimulator, a protein on the surface of T cells found in various solid tumors, which is in Phase I/II clinical trial for the treatment of head and neck squamous cell cancer, non-small cell lung cancer, triple negative breast cancer, gastric cancer, and other tumor types identified through its translational science platform. It is also developing JTX-4014, a monoclonal antibody that is in Phase I clinical trial for combination therapy; and JTX-8064, a monoclonal antibody that binds to leukocyte immunoglobulin like receptor B2 that is in the IND-enabling phase. The company has a master research and collaboration agreement with Celgene Corporation focused on developing and commercializing biologic immunotherapies. Jounce Therapeutics, Inc. was incorporated in 2012 and is headquartered in Cambridge, Massachusetts.
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