SpringWorks Therapeutics (NASDAQ:SWTX) and Adverum Biotechnologies (NASDAQ:ADVM) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Risk & Volatility
SpringWorks Therapeutics has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Adverum Biotechnologies has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500.
Valuation & Earnings
This table compares SpringWorks Therapeutics and Adverum Biotechnologies' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| SpringWorks Therapeutics | N/A | N/A | $-58,310,000.00 | ($3.55) | -19.52 |
| Adverum Biotechnologies | $250,000.00 | 4,287.38 | $-64,490,000.00 | ($1.01) | -10.85 |
SpringWorks Therapeutics has higher earnings, but lower revenue than Adverum Biotechnologies. SpringWorks Therapeutics is trading at a lower price-to-earnings ratio than Adverum Biotechnologies, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for SpringWorks Therapeutics and Adverum Biotechnologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| SpringWorks Therapeutics | 0 | 0 | 3 | 0 | 3.00 |
| Adverum Biotechnologies | 0 | 2 | 8 | 0 | 2.80 |
SpringWorks Therapeutics currently has a consensus price target of $91.00, suggesting a potential upside of 31.31%. Adverum Biotechnologies has a consensus price target of $23.50, suggesting a potential upside of 114.42%. Given Adverum Biotechnologies' higher probable upside, analysts clearly believe Adverum Biotechnologies is more favorable than SpringWorks Therapeutics.
Institutional & Insider Ownership
76.3% of SpringWorks Therapeutics shares are held by institutional investors. Comparatively, 97.4% of Adverum Biotechnologies shares are held by institutional investors. 51.2% of SpringWorks Therapeutics shares are held by insiders. Comparatively, 12.4% of Adverum Biotechnologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares SpringWorks Therapeutics and Adverum Biotechnologies' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| SpringWorks Therapeutics | N/A | -24.48% | -23.58% |
| Adverum Biotechnologies | N/A | -32.23% | -28.02% |
Summary
Adverum Biotechnologies beats SpringWorks Therapeutics on 7 of the 12 factors compared between the two stocks.
