Alector (NASDAQ:ALEC) and Kodiak Sciences (NASDAQ:KOD) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.
Risk & Volatility
Alector has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Kodiak Sciences has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Alector and Kodiak Sciences, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Alector | 0 | 0 | 6 | 0 | 3.00 |
Kodiak Sciences | 1 | 7 | 3 | 0 | 2.18 |
Alector currently has a consensus target price of $33.6667, indicating a potential upside of 107.18%. Kodiak Sciences has a consensus target price of $129.1818, indicating a potential upside of 15.68%. Given Alector's stronger consensus rating and higher probable upside, equities analysts clearly believe Alector is more favorable than Kodiak Sciences.
Profitability
This table compares Alector and Kodiak Sciences' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Alector | -757.78% | -53.86% | -31.44% |
Kodiak Sciences | N/A | -32.32% | -23.86% |
Valuation and Earnings
This table compares Alector and Kodiak Sciences' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Alector | $21.22 million | 60.94 | $-105,390,000.00 | ($1.71) | -9.50 |
Kodiak Sciences | N/A | N/A | $-47,370,000.00 | ($1.25) | -89.34 |
Kodiak Sciences has lower revenue, but higher earnings than Alector. Kodiak Sciences is trading at a lower price-to-earnings ratio than Alector, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
61.5% of Alector shares are owned by institutional investors. Comparatively, 82.3% of Kodiak Sciences shares are owned by institutional investors. 13.9% of Alector shares are owned by company insiders. Comparatively, 39.3% of Kodiak Sciences shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Kodiak Sciences beats Alector on 8 of the 13 factors compared between the two stocks.