Critical Contrast: Alvotech (NASDAQ:ALVO) vs. Alnylam Pharmaceuticals (NASDAQ:ALNY)

Alnylam Pharmaceuticals (NASDAQ:ALNY) and Alvotech (NASDAQ:ALVO) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Institutional & Insider Ownership

93.0% of Alnylam Pharmaceuticals shares are held by institutional investors. 0.9% of Alnylam Pharmaceuticals shares are held by company insiders. Comparatively, 0.5% of Alvotech shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Alnylam Pharmaceuticals has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500. Comparatively, Alvotech has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Alnylam Pharmaceuticals and Alvotech, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alnylam Pharmaceuticals	0	5	16	2	2.87
Alvotech	1	2	5	0	2.50

Alnylam Pharmaceuticals currently has a consensus price target of $367.20, suggesting a potential upside of 53.41%. Alvotech has a consensus price target of $8.50, suggesting a potential upside of 66.67%. Given Alvotech’s higher probable upside, analysts plainly believe Alvotech is more favorable than Alnylam Pharmaceuticals.

Earnings and Valuation

This table compares Alnylam Pharmaceuticals and Alvotech”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alnylam Pharmaceuticals	$3.71 billion	8.62	$313.75 million	$5.38	44.49
Alvotech	$588.90 million	2.61	$27.92 million	($0.61)	-8.36

Alnylam Pharmaceuticals has higher revenue and earnings than Alvotech. Alvotech is trading at a lower price-to-earnings ratio than Alnylam Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Alnylam Pharmaceuticals and Alvotech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alnylam Pharmaceuticals	15.26%	84.93%	14.30%
Alvotech	-36.31%	-11.92%	-11.73%

Summary

Alnylam Pharmaceuticals beats Alvotech on 14 of the 15 factors compared between the two stocks.

About Alnylam Pharmaceuticals

Alnylam Pharmaceuticals, Inc., a biopharmaceutical company, focuses on discovering, developing, and commercializing novel therapeutics based on ribonucleic acid interference. Its marketed products include ONPATTRO (patisiran) for the treatment of the polyneuropathy of hereditary transthyretin-mediated amyloidosis in adults; AMVUTTRA for the treatment of hATTR amyloidosis with polyneuropathy in adults; GIVLAARI for the treatment of adults with acute hepatic porphyria; and OXLUMO for the treatment of primary hyperoxaluria type 1. In addition, the company develops patisiran for the treatment of transthyretin amyloidosis, or ATTR amyloidosis, with cardiomyopathy; cemdisiran to treat complement-mediated diseases; Belcesiran for the treatment of alpha-1 liver disease; Elebsiran to treat chronic HBV infection; Zilebesiran to treat hypertension; ALN-APP to treat Alzheimer's disease and cerebral amyloid angiopathy; and ALN-HSD to treat NASH. Further, it offers Fitusiran for the treatment of hemophilia, Inclisiran to treat hypercholesterolemia, lumasiran for the treatment of advanced PH1, and vutrisiran for the treatment of ATTR amyloidosis, which is in phase 3 clinical trial. Alnylam Pharmaceuticals, Inc. has strategic collaborations with Regeneron Pharmaceuticals, Inc. to discover, develop, and commercialize RNAi therapeutics for a range of diseases by addressing therapeutic targets expressed in the eye and CNS; and Roche to develop pharmaceutical products containing zilebesiran. It also has license and collaboration agreements with Novartis AG; Vir Biotechnology, Inc.; Dicerna Pharmaceuticals, Inc.; Ionis Pharmaceuticals, Inc.; and PeptiDream, Inc. The company was founded in 2002 and is headquartered in Cambridge, Massachusetts.

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.