Reviewing iBio (NYSE:IBIO) & Aerovate Therapeutics (NASDAQ:AVTE)

iBio (NYSE:IBIO) and Aerovate Therapeutics (NASDAQ:AVTE) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.

Profitability

This table compares iBio and Aerovate Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iBio	N/A	-73.15%	-45.51%
Aerovate Therapeutics	N/A	-90.19%	-77.47%

Earnings and Valuation

This table compares iBio and Aerovate Therapeutics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iBio	$500,000.00	102.54	-$24.91 million	($1.39)	-1.64
Aerovate Therapeutics	N/A	N/A	-$75.52 million	($1.70)	-8.93

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

Volatility and Risk

iBio has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Aerovate Therapeutics has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for iBio and Aerovate Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iBio	0	0	3	0	3.00
Aerovate Therapeutics	0	0	0	0	0.00

iBio presently has a consensus price target of $4.00, indicating a potential upside of 75.44%. Given iBio’s stronger consensus rating and higher possible upside, analysts clearly believe iBio is more favorable than Aerovate Therapeutics.

Institutional and Insider Ownership

7.9% of iBio shares are owned by institutional investors. 2.8% of iBio shares are owned by company insiders. Comparatively, 24.9% of Aerovate Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

iBio beats Aerovate Therapeutics on 11 of the 12 factors compared between the two stocks.

About iBio

iBio, Inc., a biotechnology company, engages in the development of precision antibodies in the United States. It offers IBIO-100, a preclinical anti-fibrotic program for the treatment of systemic scleroderma and idiopathic pulmonary fibrosis; and EngageTx platform, which provides an optimized CD3 T-cell engager antibody panel. The company is also developing vaccine candidates, including IBIO-101, an antibody to reduce tumor growth; Endostatin E4 peptide for use in chemotherapy and immunotherapy; Trop-2 for the treatment Trop-2 positive cancers; MUC16, a tumor-associated epitope; anti-EGFRvIII antibody to treat glioblastoma and other cancers; CCR8 protein candidate for treatment of various cancers; PD-1 agonist for the treatment of rheumatoid arthritis and other inflammatory diseases; and IBIO-400 for the treatment of classical swine fever. iBio, Inc. has agreement with The Texas A&M University System for designing and manufacturing of plant-made biopharmaceuticals; and a research collaboration with the National Institute of Allergy and Infectious Diseases to investigate the potential of the company's AI-driven epitope steering platform for the development of a vaccine for Lassa fever. The company was incorporated in 2008 and is headquartered in Bryan, Texas.

About Aerovate Therapeutics

Aerovate Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops drugs that enhance the lives of patients with rare cardiopulmonary diseases in the United States. It focuses on advancing AV-101, a dry powder inhaled formulation of imatinib for the treatment of pulmonary arterial hypertension, which is in Phase 2b/Phase 3 trial. The company was incorporated in 2018 and is headquartered in Waltham, Massachusetts.