Avalo Therapeutics (NASDAQ:AVTX – Get Free Report) and Silence Therapeutics (NASDAQ:SLN – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.
Risk and Volatility
Avalo Therapeutics has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Silence Therapeutics has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.
Profitability
This table compares Avalo Therapeutics and Silence Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Avalo Therapeutics | N/A | -88.43% | -73.86% |
| Silence Therapeutics | -15,851.88% | -101.71% | -55.53% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Avalo Therapeutics | $440,000.00 | 664.68 | -$35.13 million | ($5.36) | -2.95 |
| Silence Therapeutics | $560,000.00 | 581.94 | -$88.61 million | ($1.87) | -3.69 |
Avalo Therapeutics has higher earnings, but lower revenue than Silence Therapeutics. Silence Therapeutics is trading at a lower price-to-earnings ratio than Avalo Therapeutics, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Avalo Therapeutics and Silence Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avalo Therapeutics | 1 | 0 | 8 | 1 | 2.90 |
| Silence Therapeutics | 2 | 0 | 5 | 0 | 2.43 |
Avalo Therapeutics currently has a consensus price target of $33.00, suggesting a potential upside of 108.86%. Silence Therapeutics has a consensus price target of $34.50, suggesting a potential upside of 400.00%. Given Silence Therapeutics’ higher possible upside, analysts plainly believe Silence Therapeutics is more favorable than Avalo Therapeutics.
Institutional & Insider Ownership
87.1% of Avalo Therapeutics shares are held by institutional investors. Comparatively, 98.7% of Silence Therapeutics shares are held by institutional investors. 0.3% of Avalo Therapeutics shares are held by company insiders. Comparatively, 4.1% of Silence Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Avalo Therapeutics beats Silence Therapeutics on 8 of the 15 factors compared between the two stocks.
About Avalo Therapeutics
Avalo Therapeutics, Inc., a clinical stage biotechnology company, focuses on the development of therapies for the treatment of immune dysregulation in the Unites States. The company's drug candidates include AVTX-009, an Anti-IL-1ß monoclonal antibody which is under Phase I targeting inflammatory diseases; and AVTX-008, a fully human B and T lymphocyte attenuator agonist fusion protein for the treatment of immune dysregulation disorders. It also develops Quisovalimab (AVTX-002), an Anti-LIGHT mAb which is in phase II for immune-inflammatory diseases. The company was formerly known as Cerecor Inc. and changed its name to Avalo Therapeutics, Inc. in August 2021. Avalo Therapeutics, Inc. was incorporated in 2011 and is headquartered in Rockville, Maryland.
About Silence Therapeutics
Silence Therapeutics plc, a biotechnology company, focuses on the discovery and development novel molecules incorporating short interfering ribonucleic acid (siRNA) to inhibit the expression of specific target genes in hematology, cardiovascular, and rare diseases. The company's mRNAi GalNAc Oligonucleotide Discovery platform consists of precision engineered product candidates designed to target specific disease-associated genes in the liver. The company develops Zerlasiran (SLN360), which is in phase 2 clinical trial for cardiovascular disease associated with elevated lipoprotein(a); and Divesiran (SLN124), an siRNA molecule that is in Phase I clinical trials for the treatment of genetic hematological conditions, including polycythemia vera. It is also developing SLN-COMP-1 and SLN-COMP-2 for complement-mediated diseases; and SLN-HAN-1 and SLN-HAN-2. It has collaboration agreements with AstraZeneca PLC to discover, develop, and commercialize siRNA therapeutics for the treatment of cardiovascular, renal, metabolic, and respiratory diseases; Hansoh Pharmaceutical Group Company Limited to develop siRNAs; and Mallinckrodt Pharma IP Trading DAC to develop and commercialize RNAi drug targets designed to silence the complement cascade in complement-mediated disorders. The company was formerly known as SR Pharma plc and changed its name to Silence Therapeutics plc in May 2007. Silence Therapeutics plc was incorporated in 1994 and is headquartered in London, the United Kingdom.
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