Critical Analysis: Adaptimmune Therapeutics (NASDAQ:ADAP) versus iTeos Therapeutics (NASDAQ:ITOS)

Adaptimmune Therapeutics (NASDAQ:ADAPGet Rating) and iTeos Therapeutics (NASDAQ:ITOSGet Rating) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Institutional & Insider Ownership

94.7% of iTeos Therapeutics shares are held by institutional investors. 18.9% of Adaptimmune Therapeutics shares are held by insiders. Comparatively, 4.0% of iTeos Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Adaptimmune Therapeutics has a beta of 2.07, meaning that its share price is 107% more volatile than the S&P 500. Comparatively, iTeos Therapeutics has a beta of 1.94, meaning that its share price is 94% more volatile than the S&P 500.

Valuation & Earnings

This table compares Adaptimmune Therapeutics and iTeos Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Adaptimmune Therapeutics $6.15 million 35.97 -$158.09 million ($1.08) -1.31
iTeos Therapeutics $344.77 million 1.91 $214.52 million $7.81 2.38

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

Profitability

This table compares Adaptimmune Therapeutics and iTeos Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adaptimmune Therapeutics -1,836.31% -76.84% -41.79%
iTeos Therapeutics N/A 73.54% 42.01%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Adaptimmune Therapeutics and iTeos Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adaptimmune Therapeutics 1 3 1 0 2.00
iTeos Therapeutics 0 0 3 0 3.00

Adaptimmune Therapeutics currently has a consensus price target of $7.60, suggesting a potential upside of 439.01%. iTeos Therapeutics has a consensus price target of $47.33, suggesting a potential upside of 154.75%. Given Adaptimmune Therapeutics’ higher possible upside, analysts plainly believe Adaptimmune Therapeutics is more favorable than iTeos Therapeutics.

Summary

iTeos Therapeutics beats Adaptimmune Therapeutics on 9 of the 13 factors compared between the two stocks.

Adaptimmune Therapeutics Company Profile (Get Rating)

Adaptimmune Therapeutics plc, a clinical-stage biopharmaceutical company, focuses on providing novel cell therapies primarily to patients with solid tumors in the United States and the United Kingdom. The company's specific peptide enhanced affinity receptor (SPEAR) T-cell platform enables it to identify cancer targets. It is developing ADP-A2M4 that is in phase II clinical trials with SPEARHEAD-1 for synovial sarcoma and myxoid round cell liposarcoma indications (MRCLS); in phase II clinical trials with SPEARHEAD-2 for patients with head and neck cancer; and in phase I clinical trials for urothelial, melanoma, head and neck, ovarian, non-small cell lung, esophageal and gastric, synovial sarcoma, and MRCLS cancers. The company is also developing ADP-A2AFP, which is in phase I clinical trials for hepatocellular carcinoma; and ADP-A2M4CD8, which is in phase I clinical trial for SPEAR T-cells focusing on treating patients with lung, gastroesophageal, head and neck, ovarian, and bladder cancers. It has a collaboration and license agreement with GSK; third party collaborations with Noile-Immune Biotech Inc., Alpine Immune Sciences, Inc., and National Center for Cancer Immune Therapy in Denmark; strategic alliance agreement with the MD Anderson Cancer Center; and co-development and co-commercialization agreement with Universal Cells, Inc. Adaptimmune Therapeutics plc also has a strategic collaboration and license agreement with Genentech, Inc. and F. Hoffman-La Roche Ltd to develop personalized allogeneic T-cell therapies utilizing aß T-cell receptors. Adaptimmune Therapeutics plc was founded in 2008 and is headquartered in Abingdon, the United Kingdom.

iTeos Therapeutics Company Profile (Get Rating)

Iteos Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in the discovery and development of immuno-oncology therapeutics for patients. The company's product pipeline includes inupadenant, a small molecule antagonist of the adenosine A2AR antagonists that is in Phase 2 clinical trials; and EOS-448, an antagonist of TIGIT or T-cell immunoreceptor with Ig and ITIM domains, which is in Phase 1/2 clinical trial, as well as used to engage the Fc gamma receptor, or Fc?R to activate dendritic cells and macrophages and to promote antibody-dependent cellular cytotoxicity, or ADCC activity. Iteos Therapeutics, Inc. was founded in 2011 and is headquartered in Watertown, Massachusetts.

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