Critical Analysis: C4 Therapeutics (NASDAQ:CCCC) & Adlai Nortye (NASDAQ:ANL)

Adlai Nortye (NASDAQ:ANL) and C4 Therapeutics (NASDAQ:CCCC) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Profitability

This table compares Adlai Nortye and C4 Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adlai Nortye	N/A	N/A	N/A
C4 Therapeutics	-292.08%	-53.83%	-33.85%

Valuation and Earnings

This table compares Adlai Nortye and C4 Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adlai Nortye	$5.00 million	54.61	-$51.87 million	N/A	N/A
C4 Therapeutics	$35.95 million	7.37	-$104.99 million	($1.36)	-2.00

Adlai Nortye has higher earnings, but lower revenue than C4 Therapeutics.

Volatility and Risk

Adlai Nortye has a beta of -1.5, indicating that its share price is 250% less volatile than the S&P 500. Comparatively, C4 Therapeutics has a beta of 2.85, indicating that its share price is 185% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Adlai Nortye and C4 Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adlai Nortye	1	0	2	0	2.33
C4 Therapeutics	1	1	5	0	2.57

Adlai Nortye currently has a consensus target price of $19.50, indicating a potential upside of 163.51%. C4 Therapeutics has a consensus target price of $7.75, indicating a potential upside of 185.45%. Given C4 Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe C4 Therapeutics is more favorable than Adlai Nortye.

Institutional & Insider Ownership

35.2% of Adlai Nortye shares are held by institutional investors. Comparatively, 78.8% of C4 Therapeutics shares are held by institutional investors. 8.7% of C4 Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

C4 Therapeutics beats Adlai Nortye on 7 of the 12 factors compared between the two stocks.

About Adlai Nortye

Adlai Nortye Ltd., a clinical-stage biotechnology company, focuses on the discovery and development of cancer therapies in the United States and Mainland China. Its lead product is AN2025, a pan-phosphoinositide 3-kinase inhibitor, which is in Phase III clinical trial for the treatment of recurrent or metastatic head and neck squamous cell carcinomas. The company is also developing AN0025, a small molecule prostaglandin E receptor 4 antagonist to modulate the tumor microenvironment that is in a Phase Ib clinical trial for the treatment of recurrent non-small cell lung cancer and urothelial cancer after anti-PD-1/PD-L1 treatments, recurrent triple-negative breast cancer, microsatellite stable colorectal cancer, and cervical cancer after standard of care treatments; and AN4005, an oral small-molecule PD-L1 inhibitor, which is in Phase I clinical trial to induce and stabilize PD-L1 dimerization and thereby disrupt the interaction between PD-1 and PD-L1. Its preclinical candidates include AN8025, a multifunctional antibody as T cell and antigen-presenting cell modulator; AN1025, an oral small molecule degrader of ß-catenin; and AN9025, an oral small molecule pan-KRAS inhibitor. The company was founded in 2004 and is based in Grand Cayman, the Cayman Islands.

About C4 Therapeutics

C4 Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops novel therapeutic candidates to degrade disease-causing proteins for the treatment of cancer, neurodegenerative conditions, and other diseases. Its lead product candidate is CFT7455, an orally bioavailable MonoDAC degrader of protein that is in Phase 1/2 trial targeting IKZF1 and IKZF3 for multiple myeloma and non-Hodgkin lymphomas, including peripheral T-cell lymphoma and mantle cell lymphoma, currently under Phase 1/2 clinical trials. The company is also developing CFT1946, an orally bioavailable BiDAC degrader targeting V600X mutant BRAF to treat melanoma, non-small cell lung cancer (NSCLC), colorectal cancer, and other solid malignancies, currently under Phase 1/2 clinical trials; and CFT8919, an orally bioavailable, allosteric, and mutant-selective BiDAC degrader of epidermal growth factor receptor, or EGFR, with an L858R mutation in NSCLC. It has strategic collaborations with F. Hoffmann-La Roche Ltd and Hoffmann-La Roche Inc.; Biogen MA, Inc.; Betta Pharmaceuticals, Co., Ltd.; and Merck Sharp & Dohme, LLC, as well as Calico Life Sciences LLC. The company was incorporated in 2015 and is headquartered in Watertown, Massachusetts.