Alector (NASDAQ:ALEC – Get Free Report) and Achilles Therapeutics (NASDAQ:ACHL – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Alector and Achilles Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alector | 0 | 0 | 5 | 0 | 3.00 |
| Achilles Therapeutics | 1 | 1 | 1 | 0 | 2.00 |
Alector currently has a consensus target price of $17.75, indicating a potential upside of 255.36%. Achilles Therapeutics has a consensus target price of $4.00, indicating a potential upside of 286.47%. Given Achilles Therapeutics’ higher probable upside, analysts plainly believe Achilles Therapeutics is more favorable than Alector.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alector | $97.06 million | 5.01 | -$130.39 million | ($1.80) | -2.78 |
| Achilles Therapeutics | N/A | N/A | -$69.67 million | ($1.59) | -0.65 |
Achilles Therapeutics has lower revenue, but higher earnings than Alector. Alector is trading at a lower price-to-earnings ratio than Achilles Therapeutics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Alector and Achilles Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alector | -290.66% | -102.63% | -25.70% |
| Achilles Therapeutics | N/A | -47.24% | -41.69% |
Risk and Volatility
Alector has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Achilles Therapeutics has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.
Institutional and Insider Ownership
85.8% of Alector shares are owned by institutional investors. Comparatively, 56.4% of Achilles Therapeutics shares are owned by institutional investors. 9.1% of Alector shares are owned by insiders. Comparatively, 5.4% of Achilles Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Achilles Therapeutics beats Alector on 7 of the 13 factors compared between the two stocks.
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.
About Achilles Therapeutics
Achilles Therapeutics plc, a biopharmaceutical company, develops precision T cell therapies to treat solid tumors. Its platform identifies mutations formed early in the development of cancer. The company offers PELEUS, a proprietary AI-powered bioinformatics platform, used to identify clonal neoantigens in a patient. It also develops CHIRON, which is in Phase I/IIa clinical trial for use in the treatment of advanced non-small cell lung cancer; and THETIS, a product candidate in Phase I/IIa clinical trial for use in the treatment of metastatic or recurrent melanoma. The company was formerly known as Achilles TX Limited and changed its name to Achilles Therapeutics Plc in February 2021. Achilles Therapeutics Plc was founded in 2016 and is headquartered in London, the United Kingdom.
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