Alector (NASDAQ:ALEC) vs. NKGen Biotech (NYSE:NKGN) Head-To-Head Comparison

NKGen Biotech (NYSE:NKGN) and Alector (NASDAQ:ALEC) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Profitability

This table compares NKGen Biotech and Alector’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NKGen Biotech	N/A	N/A	-479.36%
Alector	-290.66%	-102.63%	-25.70%

Risk & Volatility

NKGen Biotech has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Alector has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Earnings and Valuation

This table compares NKGen Biotech and Alector”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NKGen Biotech	$80,000.00	128.79	-$82.94 million	($5.08)	-0.08
Alector	$55.28 million	8.70	-$130.39 million	($1.38)	-3.62

NKGen Biotech has higher earnings, but lower revenue than Alector. Alector is trading at a lower price-to-earnings ratio than NKGen Biotech, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for NKGen Biotech and Alector, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NKGen Biotech	0	0	0	0	N/A
Alector	0	0	5	0	3.00

Alector has a consensus target price of $17.75, suggesting a potential upside of 255.71%. Given Alector’s higher possible upside, analysts plainly believe Alector is more favorable than NKGen Biotech.

Insider and Institutional Ownership

76.2% of NKGen Biotech shares are owned by institutional investors. Comparatively, 85.8% of Alector shares are owned by institutional investors. 20.0% of NKGen Biotech shares are owned by insiders. Comparatively, 9.1% of Alector shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Alector beats NKGen Biotech on 7 of the 13 factors compared between the two stocks.

About NKGen Biotech

NKGen Biotech, Inc. operates as a clinical-stage biotechnology company that focuses on the development and commercialization of autologous, allogeneic, and CAR-NK natural killer cell therapies. It develops SNK01, an autologous NK cell therapy; and SNK02, an allogeneic NK cell therapy, which are in Phase 1 clinical trials. The company was founded in 2017 and is based in Santa Ana, California.

About Alector

Alector, Inc., a clinical stage biopharmaceutical company, develops therapies for the treatment of neurodegeneration diseases. Its products include AL001, an immune activity in the brain with genetic links to multiple neurodegenerative disorders, which is in Phase III clinical trial for the treatment of frontotemporal dementia, Alzheimer's, Parkinson's, and amyotrophic lateral sclerosis diseases; and AL101 that is in Phase I clinical trial for the treatment of neurodegenerative diseases, including Alzheimer's and Parkinson's diseases. The company also offers AL002, a product candidate that is in Phase II clinical trial for the treatment of Alzheimer's disease. Alector, Inc. has a collaboration agreement with Adimab, LLC for the research and development of antibodies; and a strategic collaboration agreement with GlaxoSmithKline plc for the development and commercialization of monoclonal antibodies, such as AL001 and AL101 to treat neurodegenerative diseases. The company was founded in 2013 and is headquartered in South San Francisco, California.