Lorus Therapeutics (NASDAQ: APTO) and Adverum Biotechnologies (NASDAQ:ADVM) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.
Institutional and Insider Ownership
1.2% of Lorus Therapeutics shares are owned by institutional investors. Comparatively, 36.7% of Adverum Biotechnologies shares are owned by institutional investors. 7.8% of Adverum Biotechnologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Lorus Therapeutics and Adverum Biotechnologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for Lorus Therapeutics and Adverum Biotechnologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lorus Therapeutics presently has a consensus target price of $6.00, suggesting a potential upside of 79.64%. Adverum Biotechnologies has a consensus target price of $7.17, suggesting a potential upside of 11.11%. Given Lorus Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Lorus Therapeutics is more favorable than Adverum Biotechnologies.
Valuation & Earnings
This table compares Lorus Therapeutics and Adverum Biotechnologies’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lorus Therapeutics||N/A||N/A||-$11.66 million||($0.52)||-6.42|
|Adverum Biotechnologies||$1.85 million||182.73||-$56.14 million||($1.29)||-5.00|
Lorus Therapeutics has higher earnings, but lower revenue than Adverum Biotechnologies. Lorus Therapeutics is trading at a lower price-to-earnings ratio than Adverum Biotechnologies, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Lorus Therapeutics has a beta of 2.32, meaning that its stock price is 132% more volatile than the S&P 500. Comparatively, Adverum Biotechnologies has a beta of 3.65, meaning that its stock price is 265% more volatile than the S&P 500.
Adverum Biotechnologies beats Lorus Therapeutics on 7 of the 13 factors compared between the two stocks.
Lorus Therapeutics Company Profile
Aptose Biosciences Inc., a clinical-stage biotechnology company, discovers and develops personalized therapies addressing unmet medical needs in oncology in Canada. Its lead clinical program is APTO-253, which is a Phase I clinical trial for the treatment of patients with relapsed or refractory hematologic malignancies. The company has an agreement with CrystalGenomics, Inc. to research, develop, and commercialize CG026806, a non-covalent small molecule therapeutic agent, which is in preclinical stage for the treatment of acute myeloid leukemia and chronic lymphocytic leukemia/mantle cell lymphoma. The company was formerly known as Lorus Therapeutics Inc. and changed its name to Aptose Biosciences Inc. in August 2014. Aptose Biosciences Inc. was founded in 1986 and is headquartered in Mississauga, Canada.
Adverum Biotechnologies Company Profile
Adverum Biotechnologies, Inc., a clinical-stage gene therapy company, discovers and develops novel medicines for patients suffering from rare and ocular diseases. The company's pipeline includes product candidates, which are used for the treatment of wet age-related macular degeneration (wAMD), alpha 1 antitrypsin deficiency (A1AT), and hereditary angioedema. Its lead gene therapy programs include ADVM-022 and ADVM-032, which are in the preclinical development for wAMD diseases; and ADVM-043 for the treatment of A1AT. The company is also developing ADVM-053 to treat hereditary angioedema; and other product candidates that comprise ocular therapeutics, including AVA-311 for the treatment of juvenile X-linked retinoschisis. It has collaboration agreements with Regeneron Pharmaceuticals, Inc. to research, develop, and commercialize gene therapy products for ophthalmic diseases; and Editas Medicine, Inc. to explore the delivery of genome editing medicines for the treatment of inherited retinal diseases. The company was formerly known as Avalanche Biotechnologies, Inc. and changed its name to Adverum Biotechnologies, Inc. in May 2016. Adverum Biotechnologies, Inc. was founded in 2006 and is headquartered in Menlo Park, California.
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