Contrasting Allakos (NASDAQ:ALLK) and GT Biopharma (NASDAQ:GTBP)

Allakos (NASDAQ:ALLK) and GT Biopharma (NASDAQ:GTBP) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Risk and Volatility

Allakos has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, GT Biopharma has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.

Valuation & Earnings

This table compares Allakos and GT Biopharma”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allakos	N/A	N/A	-$185.70 million	($2.03)	-0.53
GT Biopharma	N/A	N/A	-$7.60 million	N/A	N/A

Analyst Recommendations

This is a summary of current ratings for Allakos and GT Biopharma, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allakos	1	2	1	0	2.00
GT Biopharma	0	0	1	1	3.50

Allakos currently has a consensus target price of $1.67, indicating a potential upside of 55.76%. GT Biopharma has a consensus target price of $11.00, indicating a potential upside of 436.59%. Given GT Biopharma’s stronger consensus rating and higher probable upside, analysts clearly believe GT Biopharma is more favorable than Allakos.

Insider and Institutional Ownership

84.6% of Allakos shares are held by institutional investors. Comparatively, 8.1% of GT Biopharma shares are held by institutional investors. 16.1% of Allakos shares are held by insiders. Comparatively, 10.9% of GT Biopharma 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 Allakos and GT Biopharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allakos	N/A	-140.87%	-86.22%
GT Biopharma	N/A	-257.47%	-131.09%

Summary

Allakos beats GT Biopharma on 5 of the 9 factors compared between the two stocks.

About Allakos

Allakos Inc., a clinical stage biotechnology company, develops therapeutics that target immunomodulatory receptors present on immune effector cells in allergy, inflammatory, and proliferative diseases in the United States. The company’s lead product candidate is AK006, which in a Phase I clinical trial for the treatment of chronic spontaneous urticaria (CSU) and other indications. The company was incorporated in 2012 and is headquartered in San Carlos, California.

About GT Biopharma

GT Biopharma, Inc., a clinical stage biopharmaceutical company, focuses on the development and commercialization of immuno-oncology products based on its proprietary Tri-specific Killer Engager (TriKE) fusion protein immune cell engager technology platform. It develops GTB-3550, a single-chain tri-specific recombinant fusion protein conjugate that is in Phase I clinical trial for the treatment of myelodysplastic syndromes, refractory/relapsed acute myeloid leukemia or advanced systemic mastocytosis, and CD33+ malignancies. The company is developing GTB-3650, which is in preclinical studies that target CD33 on the surface of myeloid leukemias; and GTB-5550 that is in preclinical studies for treating patients with B7-H3 positive solid tumors. GT Biopharma, Inc. has a co-development partnership agreement with Altor BioScience Corporation for the clinical development of a 161533 (GTB-3550) TriKE fusion protein for cancer therapies; and a license agreement with the Regents of the University of Minnesota to develop and commercialize cancer therapies using TriKE technology. The company was formerly known as OXIS International, Inc. and changed its name to GT Biopharma, Inc. in July 2017. GT Biopharma, Inc. was incorporated in 1965 and is based in Brisbane, California.