Phathom Pharmaceuticals (NASDAQ:PHAT – Get Free Report) and Allogene Therapeutics (NASDAQ:ALLO – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.
Profitability
This table compares Phathom Pharmaceuticals and Allogene Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Phathom Pharmaceuticals | -289.51% | N/A | -90.40% |
| Allogene Therapeutics | N/A | -55.99% | -42.75% |
Institutional and Insider Ownership
99.0% of Phathom Pharmaceuticals shares are held by institutional investors. Comparatively, 83.6% of Allogene Therapeutics shares are held by institutional investors. 24.1% of Phathom Pharmaceuticals shares are held by company insiders. Comparatively, 13.2% of Allogene Therapeutics shares are held by company 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.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Phathom Pharmaceuticals | 0 | 1 | 4 | 1 | 3.00 |
| Allogene Therapeutics | 0 | 3 | 9 | 0 | 2.75 |
Phathom Pharmaceuticals currently has a consensus target price of $17.50, indicating a potential upside of 54.46%. Allogene Therapeutics has a consensus target price of $8.44, indicating a potential upside of 564.92%. Given Allogene Therapeutics’ higher possible upside, analysts plainly believe Allogene Therapeutics is more favorable than Phathom Pharmaceuticals.
Volatility & Risk
Phathom Pharmaceuticals has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, Allogene Therapeutics has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.
Valuation and Earnings
This table compares Phathom Pharmaceuticals and Allogene Therapeutics”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Phathom Pharmaceuticals | $55.25 million | 14.55 | -$334.33 million | ($4.73) | -2.40 |
| Allogene Therapeutics | $20,000.00 | 14,089.38 | -$257.59 million | ($1.11) | -1.14 |
Allogene Therapeutics has lower revenue, but higher earnings than Phathom Pharmaceuticals. Phathom Pharmaceuticals is trading at a lower price-to-earnings ratio than Allogene Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
Allogene Therapeutics beats Phathom Pharmaceuticals on 8 of the 15 factors compared between the two stocks.
About Phathom Pharmaceuticals
Phathom Pharmaceuticals, Inc., biopharmaceutical company, focuses on developing and commercializing treatments for gastrointestinal diseases. The company has the rights in the United States, Europe, and Canada for an investigational potassium-competitive acid blocker (P-CAB) that blocks acid secretion in the stomach. It is also developing vonoprazan for the treatment of erosive gastroesophageal reflux disease; and in combination with antibiotics for the treatment of Helicobacter pylori infection. The company was incorporated in 2018 and is headquartered in Florham Park, New Jersey.
About Allogene Therapeutics
Allogene Therapeutics, Inc., a clinical stage immuno-oncology company, develops and commercializes genetically engineered allogeneic T cell therapies for the treatment of cancer. It develops, manufactures, and commercializes UCART19, an allogeneic chimeric antigen receptor (CAR) T cell product candidate for the treatment of pediatric and adult patients with R/R CD19 positive B-cell acute lymphoblastic leukemia (ALL). The company also develops cemacabtagene ansegedleucel, an engineered allogeneic CAR T cell product candidate that targets CD19 for the treatment of large B-cell lymphoma; and is in Phase 1b clinical trial for the treatment of chronic lymphocytic leukemia. In addition, it is developing ALLO-715, an allogeneic CAR T cell product candidate that is in a Phase 1 clinical trial for treating R/R multiple myeloma; ALLO-605, an allogeneic CAR T cell product candidate that is in a Phase I clinical trial for the treatment of multiple myeloma; ALLO-647, an anti-CD52 monoclonal antibody; CD70 to treat renal cell cancer; ALLO-316, an allogeneic CAR T cell product candidate that is in Phase 1 clinical trial for the treatment of advanced or metastatic RCC; ALLO-329 for the treatment of certain autoimmune diseases; DLL3 for the treatment of small cell lung cancer and other aggressive neuroendocrine tumors; and Claudin 18.2 for the treatment of gastric and pancreatic cancer. The company has license and collaboration agreements with Pfizer Inc.; Servier; Cellectis S.A.; and Notch Therapeutics Inc. It also has a strategic collaboration agreement with The University of Texas MD Anderson Cancer Center for the preclinical and clinical investigation of allogeneic CAR T cell product candidates; and a strategic partnership with Foresight Diagnostics to develop MRD-based In-Vitro Diagnostic for use in ALPHA3. The company was incorporated in 2017 and is headquartered in South San Francisco, California.
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