Critical Contrast: Twist Bioscience (NASDAQ:TWST) vs. Allogene Therapeutics (NASDAQ:ALLO)

Twist Bioscience (NASDAQ:TWST) and Allogene Therapeutics (NASDAQ:ALLO) are both mid-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Profitability

This table compares Twist Bioscience and Allogene Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Twist Bioscience -222.66% -71.31% -54.49%
Allogene Therapeutics N/A -33.05% -29.27%

Analyst Ratings

This is a summary of recent recommendations and price targets for Twist Bioscience and Allogene Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Twist Bioscience 0 0 2 0 3.00
Allogene Therapeutics 0 5 11 0 2.69

Twist Bioscience presently has a consensus price target of $42.00, indicating a potential downside of 23.23%. Allogene Therapeutics has a consensus price target of $47.08, indicating a potential upside of 9.94%. Given Allogene Therapeutics’ higher possible upside, analysts clearly believe Allogene Therapeutics is more favorable than Twist Bioscience.

Insider & Institutional Ownership

75.3% of Twist Bioscience shares are owned by institutional investors. Comparatively, 58.0% of Allogene Therapeutics shares are owned by institutional investors. 25.1% of Twist Bioscience shares are owned by company insiders. Comparatively, 31.3% of Allogene Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Twist Bioscience has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, Allogene Therapeutics has a beta of 1.98, indicating that its share price is 98% more volatile than the S&P 500.

Valuation and Earnings

This table compares Twist Bioscience and Allogene Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Twist Bioscience $54.38 million 41.23 -$107.67 million ($3.92) -13.96
Allogene Therapeutics N/A N/A -$184.59 million ($1.83) -23.40

Twist Bioscience has higher revenue and earnings than Allogene Therapeutics. Allogene Therapeutics is trading at a lower price-to-earnings ratio than Twist Bioscience, indicating that it is currently the more affordable of the two stocks.

Summary

Allogene Therapeutics beats Twist Bioscience on 8 of the 13 factors compared between the two stocks.

Twist Bioscience Company Profile

Twist Bioscience Corporation, a synthetic biology company, manufactures and sells synthetic DNA-based products. The company's DNA synthesis platform enables the manufacturing of synthetic DNA by writing DNA on a silicon chip. It offers synthetic DNA-based products, including synthetic genes, tools for sample preparation, antibody libraries for drug discovery and development, and DNA as a digital data storage medium. Twist Bioscience Corporation has a collaboration agreement with Pandion Therapeutics, Inc. to apply its antibody optimization platform for a targeting arm of a bispecific antibody. The company was founded in 2013 and is headquartered in San Francisco, California.

Allogene Therapeutics Company Profile

Allogene Therapeutics, Inc., a clinical stage immuno-oncology company, develops and commercializes genetically engineered allogeneic T cell therapies for the treatment of cancer. The company is developing UCART19, an allogeneic chimeric antigen receptor (CAR) T cell product candidate, which is in Phase I clinical trials for the treatment of pediatric and adult patients with R/R CD19 positive B-cell ALL; and ALLO-501, an allogeneic CAR T cell product candidate targeting CD19 to treat R/R non-Hodgkin lymphoma. Its preclinical product candidates include ALLO-715, an allogeneic CAR T cell product candidate for treating R/R multiple myeloma; ALLO-819, an allogeneic CAR T cell product candidates for the treatment of acute myeloid leukemia; CD70 to treat renal cell cancer; DLL3 for the treatment of small cell lung cancer and other aggressive neuroendocrine tumors; and ALLO-647, an anti-CD52 monoclonal antibody for use as a lymphodepletion agent. The company was founded in 2017 and is headquartered in South San Francisco, California.

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