Comparing Adverum Biotechnologies (NASDAQ:ADVM) and Talaris Therapeutics (NASDAQ:TALS)

Talaris Therapeutics (NASDAQ:TALS) and Adverum Biotechnologies (NASDAQ:ADVM) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.

Analyst Ratings

This is a summary of current recommendations for Talaris Therapeutics and Adverum Biotechnologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Talaris Therapeutics	0	2	0	0	2.00
Adverum Biotechnologies	0	1	2	0	2.67

Talaris Therapeutics presently has a consensus target price of $7.50, suggesting a potential upside of 155.97%. Adverum Biotechnologies has a consensus target price of $3.00, suggesting a potential upside of 66.67%. Given Talaris Therapeutics’ higher possible upside, research analysts plainly believe Talaris Therapeutics is more favorable than Adverum Biotechnologies.

Institutional & Insider Ownership

67.6% of Talaris Therapeutics shares are owned by institutional investors. Comparatively, 70.9% of Adverum Biotechnologies shares are owned by institutional investors. 16.5% of Talaris Therapeutics shares are owned by company insiders. Comparatively, 5.3% of Adverum Biotechnologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Talaris Therapeutics and Adverum Biotechnologies’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Talaris Therapeutics	N/A	N/A	-$73.89 million	N/A	N/A
Adverum Biotechnologies	$7.50 million	24.24	-$154.54 million	($1.33)	-1.35

Talaris Therapeutics has higher earnings, but lower revenue than Adverum Biotechnologies.

Profitability

This table compares Talaris Therapeutics and Adverum Biotechnologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Talaris Therapeutics	N/A	-39.93%	-37.37%
Adverum Biotechnologies	N/A	-78.63%	-46.10%

Volatility & Risk

Talaris Therapeutics has a beta of 2.27, indicating that its share price is 127% more volatile than the S&P 500. Comparatively, Adverum Biotechnologies has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Summary

Talaris Therapeutics beats Adverum Biotechnologies on 6 of the 10 factors compared between the two stocks.

About Talaris Therapeutics

Talaris Therapeutics, Inc. operates as a late-clinical stage cell therapy company in the United States. The company engages in developing a method of allogeneic hematopoietic stem cell transplantation to transform the standard of care in solid organ transplantation and severe autoimmune diseases, as well as severe blood, immune, and metabolic disorders. Its lead product candidate is FCR001, a novel allogeneic cell therapy that is in Phase II trial for living donor kidney transplant patients. The company is also developing FCR001 for the patients with a severe form of scleroderma. Talaris Therapeutics, Inc. was founded in 1988 and is headquartered in Wellesley, Massachusetts.

About Adverum Biotechnologies

Adverum Biotechnologies, Inc., a clinical-stage company, develops gene therapy product candidates to treat ocular and rare diseases. Its lead product candidate is ixoberogene soroparvovec (ADVM-022), a single intravitreal injection gene therapy candidate used for the treatment of patients with chronic retinal, including wet age-related macular degeneration and diabetic macular edema. The company is developing ADVM-062 (AAV.7m8-L-opsin), a novel gene therapy product candidate for the treatment of blue cone monochromacy via a single IVT injection. Adverum Biotechnologies, Inc. has license and collaboration agreements with University of California; GenSight Biologics; Lexeo Therapeutics; and Virovek, Inc. The company was formerly known as Avalanche Biotechnologies, Inc. and changed its name to Adverum Biotechnologies, Inc. in May 2016. Adverum Biotechnologies, Inc. was incorporated in 2006 and is headquartered in Redwood City, California.