Alvotech (NASDAQ:ALVO – Get Free Report) and Revolution Medicines (NASDAQ:RVMD – Get Free Report) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.
Institutional and Insider Ownership
94.3% of Revolution Medicines shares are held by institutional investors. 0.5% of Alvotech shares are held by company insiders. Comparatively, 8.0% of Revolution Medicines shares are held 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.
Profitability
This table compares Alvotech and Revolution Medicines’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alvotech | -633.61% | N/A | -80.37% |
| Revolution Medicines | N/A | -36.41% | -32.13% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alvotech | $112.42 million | 3.00 | -$551.73 million | ($2.08) | -5.19 |
| Revolution Medicines | $742,000.00 | 9,561.18 | -$436.37 million | ($3.75) | -11.47 |
Revolution Medicines has lower revenue, but higher earnings than Alvotech. Revolution Medicines is trading at a lower price-to-earnings ratio than Alvotech, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Alvotech has a beta of -0.08, indicating that its stock price is 108% less volatile than the S&P 500. Comparatively, Revolution Medicines has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations for Alvotech and Revolution Medicines, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alvotech | 0 | 1 | 1 | 0 | 2.50 |
| Revolution Medicines | 0 | 0 | 11 | 1 | 3.08 |
Alvotech currently has a consensus target price of $14.00, indicating a potential upside of 29.75%. Revolution Medicines has a consensus target price of $52.92, indicating a potential upside of 23.06%. Given Alvotech’s higher possible upside, research analysts plainly believe Alvotech is more favorable than Revolution Medicines.
Summary
Revolution Medicines beats Alvotech on 10 of the 15 factors compared between the two stocks.
About Alvotech
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. In addition, it 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 Entyvio product; AVT23, a biosimilar to Xolair, which is in late-stage development to treat nasal polyps; and AVT33, a biosimilar to an Keytruda product. Alvotech was founded in 2013 and is based in Luxembourg, Luxembourg.
About Revolution Medicines
Revolution Medicines, Inc., a clinical-stage precision oncology company, develops novel targeted therapies for RAS-addicted cancers. The company's research and development pipeline comprises RAS(ON) inhibitors designed to be used as monotherapy in combination with other RAS(ON) inhibitors and/or in combination with RAS companion inhibitors or other therapeutic agents, and RAS companion inhibitors for combination treatment strategies. Its RAS(ON) inhibitors include RMC-6236 (multi), RMC-6291 (G12C), and RMC-9805 (G12D), which are in phase 1 clinical trial; and development candidates comprise RMC-5127 (G12V), RMC-0708 (Q61H), and RMC-8839 (G13C), as well as programs focused on G12R and other targets. The company's RAS companion inhibitors include RMC-4630 that is in phase 2 clinical trial; and RMC-5552, which is in phase 1 clinical trial. Revolution Medicines, Inc. was incorporated in 2014 and is headquartered in Redwood City, California.
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