Contrasting SQZ Biotechnologies (NYSE:SQZ) & Anavex Life Sciences (NASDAQ:AVXL)

Anavex Life Sciences (NASDAQ:AVXL) and SQZ Biotechnologies (NYSE:SQZ) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Insider & Institutional Ownership

31.5% of Anavex Life Sciences shares are owned by institutional investors. Comparatively, 38.5% of SQZ Biotechnologies shares are owned by institutional investors. 11.0% of Anavex Life Sciences shares are owned by company insiders. Comparatively, 16.0% of SQZ Biotechnologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Anavex Life Sciences and SQZ Biotechnologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Anavex Life Sciences	N/A	-30.64%	-28.23%
SQZ Biotechnologies	-369.96%	-119.83%	-59.90%

Earnings & Valuation

This table compares Anavex Life Sciences and SQZ Biotechnologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Anavex Life Sciences	N/A	N/A	-$47.51 million	($0.50)	-10.78
SQZ Biotechnologies	$18.16 million	0.04	-$79.46 million	($2.61)	-0.01

Anavex Life Sciences has higher earnings, but lower revenue than SQZ Biotechnologies. Anavex Life Sciences is trading at a lower price-to-earnings ratio than SQZ Biotechnologies, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Anavex Life Sciences and SQZ Biotechnologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anavex Life Sciences	0	0	1	1	3.50
SQZ Biotechnologies	0	0	0	0	N/A

Anavex Life Sciences presently has a consensus price target of $40.00, suggesting a potential upside of 642.12%. Given Anavex Life Sciences’ higher possible upside, equities research analysts clearly believe Anavex Life Sciences is more favorable than SQZ Biotechnologies.

Volatility & Risk

Anavex Life Sciences has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, SQZ Biotechnologies has a beta of 2.34, meaning that its stock price is 134% more volatile than the S&P 500.

Summary

Anavex Life Sciences beats SQZ Biotechnologies on 8 of the 13 factors compared between the two stocks.

About Anavex Life Sciences

Anavex Life Sciences Corp., a clinical stage biopharmaceutical company, engages in the development of therapeutics for the treatment of central nervous system diseases. Its lead product candidate is ANAVEX 2-73 for the treatment of Alzheimer's disease and Parkinson's disease, as well as other central nervous system diseases, including rare diseases, such as Rett syndrome, a rare severe neurological monogenic disorder; and infantile spasms, Fragile X syndrome, and Angelman syndrome. The company's drug candidate also comprises ANAVEX 3-71, which is in clinical trial for the treatment of schizophrenia, frontotemporal dementia, and Alzheimer's disease. Its preclinical drug candidates include ANAVEX 1-41 for the treatment of depression, stroke, and neurogenerative disease; ANAVEX 1066 for the potential treatment of neuropathic and visceral pain; and ANAVEX 1037 to treat prostate and pancreatic cancer. The company was incorporated in 2004 and is headquartered in New York, New York.

About SQZ Biotechnologies

SQZ Biotechnologies Company, a clinical-stage biotechnology company, develops cell therapies for patients with cancer, autoimmune, infectious diseases, and other serious conditions. Its lead product candidate is SQZ-PBMC-HPV, from its SQZ Antigen Presenting Cells platform, which is in a Phase I clinical trial as a monotherapy and in combination with immuno-oncology agents for the treatment of HPV16+ advanced or metastatic solid tumors, including cervical, head-and-neck, anal, penile, vulvar, and vaginal cancer. The company also develops SQZ-AAC-HPV, which is in a Phase I clinical trial for the treatment of HPV16+ advanced or metastatic solid tumors in monotherapy and in combinations with immune-oncology agents. Its additional platforms in development are SQZ Activating Antigen Carriers; and SQZ Tolerizing Antigen Carriers. The Company was incorporated in 2013 and is headquartered in Watertown, Massachusetts.