Critical Review: Atara Biotherapeutics (NASDAQ:ATRA) and AIM ImmunoTech (NYSE:AIM)

AIM ImmunoTech (NYSE:AIM) and Atara Biotherapeutics (NASDAQ:ATRA) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Insider and Institutional Ownership

15.7% of AIM ImmunoTech shares are owned by institutional investors. 1.4% of AIM ImmunoTech shares are owned by insiders. Comparatively, 4.3% of Atara Biotherapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

AIM ImmunoTech has a beta of -0.81, meaning that its stock price is 181% less volatile than the S&P 500. Comparatively, Atara Biotherapeutics has a beta of 2.41, meaning that its stock price is 141% more volatile than the S&P 500.

Profitability

This table compares AIM ImmunoTech and Atara Biotherapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AIM ImmunoTech -9,718.49% -23.90% -22.44%
Atara Biotherapeutics N/A -77.88% -63.72%

Valuation & Earnings

This table compares AIM ImmunoTech and Atara Biotherapeutics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AIM ImmunoTech $160,000.00 624.82 -$14.40 million N/A N/A
Atara Biotherapeutics N/A N/A -$306.62 million ($4.15) -3.76

AIM ImmunoTech has higher revenue and earnings than Atara Biotherapeutics.

Analyst Recommendations

This is a breakdown of recent ratings for AIM ImmunoTech and Atara Biotherapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AIM ImmunoTech 0 0 2 0 3.00
Atara Biotherapeutics 0 2 8 0 2.80

AIM ImmunoTech currently has a consensus target price of $3.75, indicating a potential upside of 79.43%. Atara Biotherapeutics has a consensus target price of $36.63, indicating a potential upside of 134.63%. Given Atara Biotherapeutics’ higher probable upside, analysts plainly believe Atara Biotherapeutics is more favorable than AIM ImmunoTech.

About AIM ImmunoTech

AIM ImmunoTech Inc., an immuno-pharma company, focuses on the research and development of therapeutics to treat multiple types of cancers, viruses, and immune-deficiency disorders in the United States. The company's products include Ampligen, a drug of macromolecular ribonucleic acid molecules for the treatment of chronic fatigue syndrome (CFS). It is also developing Ampligen for the treatment of renal cell carcinoma, malignant melanoma, non-small cell lung, ovarian, breast, colorectal, prostate and pancreatic cancer, myalgic encephalomyelitis, Hepatitis B, and HIV. The company also provides Alferon N Injection, an injectable formulation of natural alpha interferon to treat a category of genital warts, a sexually transmitted disease. AIM ImmunoTech Inc. has agreements with UMN Pharma Inc.; Japanese National Institute of Infectious Diseases; and Shionogi & Co., Ltd.; Polysciences Inc.; and University of Cagliari Dipartimento di Scienze della Vita e dell'Ambiente. The company was formerly known as Hemispherx Biopharma, Inc. and changed its name to AIM ImmunoTech Inc. in August 2019. AIM ImmunoTech Inc. was incorporated in 1990 and is headquartered in Ocala, Florida.

About Atara Biotherapeutics

Atara Biotherapeutics, Inc., an off-the-shelf T-cell immunotherapy company, develops treatments for patients with cancer, autoimmune, and viral diseases in the United States. It is developing tabelecleucel, a T-cell immunotherapy that is Phase 3 clinical trials for the treatment of epstein-barr virus (EBV) driven post-transplant lymphoproliferative disease, as well as hematologic and solid tumors, including nasopharyngeal carcinoma. The company is also developing next-generation CAR T immunotherapies for patients with hematologic malignancies and solid tumors, including ATA2271 and ATA3271 for mesothelin; and ATA2431 and ATA3219 for B-cell malignancies, as well as ATA188 for the treatment of multiple sclerosis. In addition, it develops ATA2321 for acute myeloid leukemia; and ATA368 for human papillomavirus. Atara Biotherapeutics, Inc. has a license agreement with Memorial Sloan Kettering Cancer Center; license, and research and development collaboration agreement with QIMR Berghofer Medical Research Institute; and strategic collaboration with H. Lee Moffitt Cancer Center, as well as Bayer AG for mesothelin-targeted CAR T-cell therapies for solid tumors. The company was incorporated in 2012 and is headquartered in South San Francisco, California.

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