Analyzing Avalo Therapeutics (NASDAQ:AVTX) and PaxMedica (NASDAQ:PXMD)

PaxMedica (NASDAQ:PXMD) and Avalo Therapeutics (NASDAQ:AVTX) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for PaxMedica and Avalo Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PaxMedica	0	0	1	0	3.00
Avalo Therapeutics	0	0	1	0	3.00

PaxMedica currently has a consensus price target of $3.00, indicating a potential upside of 2,204.15%. Given PaxMedica’s higher possible upside, equities analysts plainly believe PaxMedica is more favorable than Avalo Therapeutics.

Risk & Volatility

PaxMedica has a beta of -0.55, suggesting that its share price is 155% less volatile than the S&P 500. Comparatively, Avalo Therapeutics has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Institutional & Insider Ownership

4.9% of PaxMedica shares are owned by institutional investors. Comparatively, 87.1% of Avalo Therapeutics shares are owned by institutional investors. 1.0% of PaxMedica shares are owned by insiders. Comparatively, 0.3% of Avalo Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares PaxMedica and Avalo Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PaxMedica	N/A	-3,167.89%	-560.35%
Avalo Therapeutics	N/A	-306.52%	113.09%

Earnings & Valuation

This table compares PaxMedica and Avalo Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PaxMedica	N/A	N/A	-$18.29 million	N/A	N/A
Avalo Therapeutics	$807,000.00	13.33	-$31.54 million	N/A	N/A

PaxMedica has higher earnings, but lower revenue than Avalo Therapeutics.

Summary

Avalo Therapeutics beats PaxMedica on 5 of the 8 factors compared between the two stocks.

About PaxMedica

PaxMedica, Inc., a clinical stage biopharmaceutical company, focuses on the development of anti-purinergic drug therapies for the treatment of disorders with intractable neurologic symptoms. Its lead product candidate is PAX-101 that is in Phase 3 clinical trials, an intravenous formulation of suramin for the treatment of autism spectrum disorder, myalgic encephalomyelitis/chronic fatigue syndrome, long COVID-19 syndrome, fragile X syndrome, human African trypanosomiasis (HAT), and fragile X-associated tremor/ataxia syndrome. The company is developing PAX-102, an intranasal formulation of suramin for neurologic indications, as well as other new chemical entities that are targeted and selective antagonists of purine receptor subtypes; and PAX-HAT-301 for the treatment of HAT. It has a research collaboration agreement with PolarMar Health for Phase II clinical trial in austism spectrum disorder for emodin, which retains the rights for PolarMar to develop and commercialize any non-prescription supplement form of the product, and for PaxMedica, Inc. to retain exclusive rights to develop and commercialize a highly purified form of emodin. The company was formerly known as Purinix Pharmaceuticals LLC and changed its name to PaxMedica, Inc. in April 2020. PaxMedica, Inc. was incorporated in 2018 and is based in Tarrytown, New York.

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.