Critical Contrast: Alvotech (ALVO) versus Its Peers

Alvotech (NYSE:ALVO) is one of 285 publicly-traded companies in the “Biological products, except diagnostic” industry, but how does it weigh in compared to its competitors? We will compare Alvotech to similar companies based on the strength of its institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Alvotech and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alvotech	0	1	1	0	2.50
Alvotech Competitors	1446	4592	11873	202	2.60

Alvotech presently has a consensus target price of $12.67, suggesting a potential downside of 0.11%. As a group, “Biological products, except diagnostic” companies have a potential upside of 102.42%. Given Alvotech’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Alvotech has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

50.9% of shares of all “Biological products, except diagnostic” companies are owned by institutional investors. 15.8% of shares of all “Biological products, except diagnostic” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Alvotech has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500. Comparatively, Alvotech’s competitors have a beta of 1.05, meaning that their average share price is 5% more volatile than the S&P 500.

Profitability

This table compares Alvotech and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alvotech	-967.97%	N/A	-68.36%
Alvotech Competitors	-4,146.71%	-130.83%	-42.89%

Valuation and Earnings

This table compares Alvotech and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Alvotech	$93.38 million	-$551.73 million	-5.22
Alvotech Competitors	$586.69 million	-$30.20 million	7.35

Alvotech’s competitors have higher revenue and earnings than Alvotech. Alvotech is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Alvotech competitors beat Alvotech on 11 of the 13 factors compared.

Alvotech Company Profile

Alvotech, through its subsidiaries, develops and manufactures biosimilar medicines for patients worldwide. It offers biosimilar products in the therapeutic areas of autoimmune, eye, and bone disorders, as well as cancer. The company's lead program is AVT02, a high concentration formulation biosimilar to Humira to treat various inflammatory conditions, including rheumatoid arthritis, psoriatic arthritis, Crohn's disease, ulcerative colitis, plaque psoriasis, and other indications; AVT04, a biosimilar to Stelara to treat various inflammatory conditions comprising psoriatic arthritis, Crohn's disease, ulcerative colitis, plaque psoriasis, and other indications; AVT06, a biosimilar to Eylea to treat various conditions, such as age-related macular degeneration, macular edema, and diabetic retinopathy; and AVT03, a biosimilar to Xgeva and Prolia, which is in the pre-clinical phase to treat prevent bone fracture, spinal cord compression, and the need for radiation or bone surgery in patients with certain types of cancer, as well as prevent bone loss and increase bone mass. It also offers AVT05, a biosimilar to Simponi and Simponi Aria, which is in early phase development to treat various inflammatory conditions, including rheumatoid arthritis, psoriatic arthritis, ulcerative colitis, and other indications; AVT16, a biosimilar to an immunology product; AVT23, a biosimilar to Xolair, which is in late-stage development to treat nasal polyps; and AVT33, a biosimilar to an oncology product. The company was founded in 2013 and is headquartered in Reykjavik, Iceland.