Critical Comparison: Avalon GloboCare (NASDAQ:ALBT) and Passage Bio (NASDAQ:PASG)

Avalon GloboCare (NASDAQ:ALBT) and Passage Bio (NASDAQ:PASG) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Institutional & Insider Ownership

1.4% of Avalon GloboCare shares are held by institutional investors. Comparatively, 53.5% of Passage Bio shares are held by institutional investors. 64.0% of Avalon GloboCare shares are held by insiders. Comparatively, 4.3% of Passage Bio shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Avalon GloboCare and Passage Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avalon GloboCare	-1,173.55%	N/A	-58.95%
Passage Bio	N/A	-68.53%	-51.64%

Risk & Volatility

Avalon GloboCare has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500. Comparatively, Passage Bio has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Avalon GloboCare and Passage Bio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avalon GloboCare	0	0	0	0	N/A
Passage Bio	0	0	3	0	3.00

Passage Bio has a consensus price target of $9.00, indicating a potential upside of 958.82%. Given Passage Bio’s higher probable upside, analysts clearly believe Passage Bio is more favorable than Avalon GloboCare.

Valuation and Earnings

This table compares Avalon GloboCare and Passage Bio’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avalon GloboCare	$1.27 million	2.57	-$16.71 million	($1.41)	-0.21
Passage Bio	N/A	N/A	-$102.06 million	($1.53)	-0.56

Avalon GloboCare has higher revenue and earnings than Passage Bio. Passage Bio is trading at a lower price-to-earnings ratio than Avalon GloboCare, indicating that it is currently the more affordable of the two stocks.

About Avalon GloboCare

Avalon GloboCare Corp., together with its subsidiaries, owns and operates commercial real estate properties in the United States and China. The company develops and delivers transformative cellular therapeutics, precision diagnostics, and clinical laboratory services. Its leading candidates are AVA-001, an anti-CD19 CAR-T, which has completed first-in-human clinical trial for relapsed/refractory (R/R) B-cell lymphoblastic leukemia; and AVA-011 that has completed pre-clinical laboratory studies and undergoing IND-enabling process development stage to generate cGMP-grade AVA-011 CAR-T cells. It is also developing mRNA-based Flash-CAR cell therapy platform. In addition, the company develops Avalon clinical-grade tissue-specific exosome (ACTEX); AVA-Trap, a therapeutic program provides an effective therapeutic option to combat COVID-19 and other life-threatening conditions involving cytokine storms; offers therapeutic and diagnostic targets utilizing QTY-code protein design technology with Massachusetts Institute of Technology (MIT), including using the QTY code protein design technology for development of a hemofiltration device to treat Cytokine Storm; and provides co-development of next generation, transposon-based, multi-target CAR-T, CAR-NK, and other immune effector cell therapeutic modalities with Arbele Limited. Avalon GloboCare Corp. has strategic partnership with HydroPeptide, LLC to engage in co-development and commercialization of a series of clinical-grade, exosome-based cosmeceutical, and orthopedic products; and corporate research agreement with the University of Pittsburgh of the Commonwealth System of Higher Education. The company was founded in 2016 and is headquartered in Freehold, New Jersey.

About Passage Bio

Passage Bio, Inc., a genetic medicines company, develops gene therapies for central nervous system diseases. It develops PBGM01, a functional GLB1 gene encoding ß-galactosidase for infantile GM1; PBFT02, a functional granulin (GRN) and gene encoding progranulin (PGRN) for the treatment of FTD caused by progranulin deficiency; and PBKR03, a functional GALC gene encoding the hydrolytic enzyme galactosylceramidase for infantile Krabbe disease. The company develops PBML04 for the treatment of metachromatic leukodystrophy; PBAL05 for the treatment of amyotrophic lateral sclerosis; and other program for huntington's disease. It has a strategic research collaboration with the Trustees of the University of Pennsylvania's Gene Therapy Program; and collaboration agreement, and a development services and clinical supply agreement with Catalent Maryland, Inc. Passage Bio, Inc. was incorporated in 2017 and is headquartered in Philadelphia, Pennsylvania.