C4 Therapeutics (NASDAQ:CCCC) versus Arcellx (NASDAQ:ACLX) Critical Contrast

Arcellx (NASDAQ:ACLX) and C4 Therapeutics (NASDAQ:CCCC) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares Arcellx and C4 Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arcellx	-25.94%	-8.28%	-5.21%
C4 Therapeutics	-313.35%	-42.45%	-27.55%

Valuation & Earnings

This table compares Arcellx and C4 Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arcellx	$110.32 million	33.40	-$70.69 million	($0.71)	-95.96
C4 Therapeutics	$20.76 million	11.80	-$132.49 million	($1.70)	-2.04

Arcellx has higher revenue and earnings than C4 Therapeutics. Arcellx is trading at a lower price-to-earnings ratio than C4 Therapeutics, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Arcellx and C4 Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcellx	0	0	13	2	3.13
C4 Therapeutics	0	2	3	0	2.60

Arcellx presently has a consensus price target of $105.93, indicating a potential upside of 55.48%. C4 Therapeutics has a consensus price target of $11.60, indicating a potential upside of 234.29%. Given C4 Therapeutics’ higher probable upside, analysts clearly believe C4 Therapeutics is more favorable than Arcellx.

Institutional and Insider Ownership

96.0% of Arcellx shares are held by institutional investors. Comparatively, 78.8% of C4 Therapeutics shares are held by institutional investors. 6.2% of Arcellx shares are held by insiders. Comparatively, 8.6% of C4 Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Arcellx has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, C4 Therapeutics has a beta of 2.96, meaning that its share price is 196% more volatile than the S&P 500.

Summary

Arcellx beats C4 Therapeutics on 11 of the 14 factors compared between the two stocks.

About Arcellx

Arcellx, Inc., together with its subsidiary, engages in the development of various immunotherapies for patients with cancer and other incurable diseases in the United States. The company’s lead ddCAR product candidate is anitocabtagene autoleucel, which is in phase 2 clinical trial for the treatment of patients with relapsed or refractory multiple myeloma (rrMM). It also develops ACLX-001, a product candidate in Phase 1 clinical trials targeting BCMA to treat rrMM; and ACLX-002, which is in Phase 1 clinical trials that targets CD123 for treating relapsed or refractory acute myeloid leukemia (AML) and myelodysplastic syndrome (MDS). In addition, the company’s preclinical product includes ACLX-003 for the treatment of AML and MDS. Further, it focuses on the development of product candidates for solid tumor programs. It has a strategic alliance with Kite Pharma, Inc. to co-develop and co-commercialize anitocabtagene autoleucel. The company was formerly known as Encarta Therapeutics, Inc. and changed its name to Arcellx, Inc. in January 2016. Arcellx, Inc. was incorporated in 2014 and is headquartered in Redwood City, California.

About C4 Therapeutics

C4 Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops novel therapeutic candidates to degrade disease-causing proteins for the treatment of cancer, neurodegenerative conditions, and other diseases. Its lead product candidate is CFT7455, an orally bioavailable MonoDAC degrader of protein that is in Phase 1/2 trial targeting IKZF1 and IKZF3 for multiple myeloma and non-Hodgkin lymphomas, including peripheral T-cell lymphoma and mantle cell lymphoma, currently under Phase 1/2 clinical trials. The company is also developing CFT1946, an orally bioavailable BiDAC degrader targeting V600X mutant BRAF to treat melanoma, non-small cell lung cancer (NSCLC), colorectal cancer, and other solid malignancies, currently under Phase 1/2 clinical trials; and CFT8919, an orally bioavailable, allosteric, and mutant-selective BiDAC degrader of epidermal growth factor receptor, or EGFR, with an L858R mutation in NSCLC. It has strategic collaborations with F. Hoffmann-La Roche Ltd and Hoffmann-La Roche Inc.; Biogen MA, Inc.; Betta Pharmaceuticals, Co., Ltd.; and Merck Sharp & Dohme, LLC, as well as Calico Life Sciences LLC. The company was incorporated in 2015 and is headquartered in Watertown, Massachusetts.