Alector (NASDAQ:ALEC) and Biogen (NASDAQ:BIIB) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.
This table compares Alector and Biogen’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings for Alector and Biogen, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Alector presently has a consensus price target of $27.00, suggesting a potential downside of 10.00%. Biogen has a consensus price target of $316.69, suggesting a potential downside of 4.90%. Given Biogen’s higher probable upside, analysts clearly believe Biogen is more favorable than Alector.
Valuation & Earnings
This table compares Alector and Biogen’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alector||$27.51 million||75.16||-$52.25 million||($4.62)||-6.49|
|Biogen||$14.38 billion||4.03||$5.89 billion||$33.57||9.92|
Biogen has higher revenue and earnings than Alector. Alector is trading at a lower price-to-earnings ratio than Biogen, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
50.1% of Alector shares are held by institutional investors. Comparatively, 87.0% of Biogen shares are held by institutional investors. 34.4% of Alector shares are held by insiders. Comparatively, 0.4% of Biogen shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Biogen beats Alector on 10 of the 13 factors compared between the two stocks.
Alector Company Profile
Alector, Inc., a clinical stage biotechnology company, focuses on developing therapies that harness the immune system to cure neurodegenerative diseases. Its products in Phase I clinical trial include AL001, a humanized recombinant monoclonal antibody for the treatment of frontotemporal dementia; and AL002 for the treatment of Alzheimer's disease. The company's preclinical stage products comprise AL101 for the treatment of multiple neurodegenerative disorders; and AL003 for the treatment of Alzheimer's disease. It also has 10 programs under research and development stage. The company was founded in 2013 and is headquartered in South San Francisco, California.
Biogen Company Profile
Biogen Inc. discovers, develops, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases worldwide. The company offers TECFIDERA, AVONEX, PLEGRIDY, TYSABRI, and FAMPYRA for the treatment of multiple sclerosis (MS); SPINRAZA for the treatment of spinal muscular atrophy; and FUMADERM for the treatment of plaque psoriasis. It also provides BENEPALI, an etanercept biosimilar referencing ENBREL; FLIXABI, an infliximab biosimilar referencing REMICADE; and IMRALDI, an adalimumab biosimilar referencing HUMIRA. In addition, the company offers RITUXAN for the treatment of non-Hodgkin's lymphoma, chronic lymphocytic leukemia (CLL), rheumatoid arthritis, two forms of ANCA-associated vasculitis, and pemphigus vulgaris; RITUXAN HYCELA for non-Hodgkin's lymphoma and CLL; GAZYVA to treat CLL and follicular lymphoma; and OCREVUS for the treatment of primary progressive MS and relapsing MS, and other anti-CD20 therapies. Further, it is involved in developing BIIB098, Opicinumab, and BIIB061 for MS and neuroimmunology; Aducanumab, Elenbecestat, BAN2401, BIIB092, BIIB076, and BIIB080 to treat Alzheimer's disease and dementia; BIIB092 and BIIB054 for treating Parkinson's disease and movement disorders; BIIB067, BIIB078, and BIIB110 to treat neuromuscular disorders; BIIB093, TMS-007, and Natalizumab to treat acute neurology; BIIB104 for treating neurocognitive disorders; BIIB074 and BIIB095 for pain; and Dapirolzumab pegol, BG00011, and BIIB059 for treating other diseases, which are under various stages of development. The company offers products through its sales force and marketing groups. Biogen Inc. has collaboration agreements with Genentech, Inc., Eisai Co., Ltd., Alkermes Pharma Ireland Limited, Bristol-Myers Squibb Company, Acorda Therapeutics, Inc., AbbVie Inc., C4 Therapeutics, University of Pennsylvania, Applied Genetic Technologies Corporation, and others. The company was founded in 1978 and is headquartered in Cambridge, Massachusetts.
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