Critical Survey: Avalo Therapeutics (AVTX) and Its Competitors

Avalo Therapeutics (NASDAQ:AVTX) is one of 844 publicly-traded companies in the “Biotechnology” industry, but how does it contrast to its rivals? We will compare Avalo Therapeutics to related businesses based on the strength of its earnings, dividends, valuation, institutional ownership, analyst recommendations, risk and profitability.

Earnings and Valuation

This table compares Avalo Therapeutics and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Avalo Therapeutics	$60,000.00	-$78.26 million	-3.08
Avalo Therapeutics Competitors	$703.08 million	$9.72 million	-18.76

Avalo Therapeutics’ rivals have higher revenue and earnings than Avalo Therapeutics. Avalo Therapeutics is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

87.1% of Avalo Therapeutics shares are held by institutional investors. Comparatively, 47.8% of shares of all “Biotechnology” companies are held by institutional investors. 4.5% of Avalo Therapeutics shares are held by company insiders. Comparatively, 13.1% of shares of all “Biotechnology” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Avalo Therapeutics and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avalo Therapeutics	1	2	11	0	2.71
Avalo Therapeutics Competitors	9874	15295	45659	1600	2.54

Avalo Therapeutics presently has a consensus price target of $36.82, indicating a potential upside of 374.46%. As a group, “Biotechnology” companies have a potential upside of 126.09%. Given Avalo Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Avalo Therapeutics is more favorable than its rivals.

Profitability

This table compares Avalo Therapeutics and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avalo Therapeutics	N/A	-34.21%	-29.84%
Avalo Therapeutics Competitors	-12,319.70%	-407.93%	-30.95%

Volatility & Risk

Avalo Therapeutics has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Avalo Therapeutics’ rivals have a beta of -1.84, meaning that their average share price is 284% less volatile than the S&P 500.

Summary

Avalo Therapeutics beats its rivals on 8 of the 12 factors compared.

Avalo Therapeutics Company Profile

Avalo Therapeutics is a clinical-stage biopharmaceutical company focused on developing treatments for immune-mediated and inflammatory diseases. The company does not have marketed products and is centered on advancing drug candidates through clinical development. Its lead candidate, AVTX-009, is a monoclonal antibody that targets interleukin-1 beta (IL-1β), an inflammatory signaling protein. Avalo is developing the therapy for hidradenitis suppurativa, a chronic inflammatory skin disease, and has described potential applications in other inflammatory conditions.