Avalo Therapeutics (NASDAQ:AVTX) & Vericel (NASDAQ:VCEL) Head to Head Comparison
by Amy Steele · The Cerbat GemVericel (NASDAQ:VCEL – Get Free Report) and Avalo Therapeutics (NASDAQ:AVTX – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.
Valuation & Earnings
This table compares Vericel and Avalo Therapeutics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vericel | $276.26 million | 10.12 | $16.52 million | $0.47 | 116.21 |
| Avalo Therapeutics | $60,000.00 | 6,194.26 | -$78.26 million | ($4.37) | -1.59 |
Vericel has higher revenue and earnings than Avalo Therapeutics. Avalo Therapeutics is trading at a lower price-to-earnings ratio than Vericel, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Vericel and Avalo Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vericel | 10.27% | 9.09% | 6.68% |
| Avalo Therapeutics | N/A | -44.32% | -37.61% |
Insider and Institutional Ownership
87.1% of Avalo Therapeutics shares are held by institutional investors. 7.6% of Vericel shares are held by insiders. Comparatively, 4.5% of Avalo Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
Vericel has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Avalo Therapeutics has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Vericel and Avalo Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vericel | 0 | 2 | 4 | 0 | 2.67 |
| Avalo Therapeutics | 1 | 2 | 11 | 0 | 2.71 |
Vericel currently has a consensus target price of $60.80, indicating a potential upside of 11.31%. Avalo Therapeutics has a consensus target price of $36.82, indicating a potential upside of 431.29%. Given Avalo Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Avalo Therapeutics is more favorable than Vericel.
Summary
Vericel beats Avalo Therapeutics on 9 of the 14 factors compared between the two stocks.
About Vericel
Vericel Corporation, a commercial-stage biopharmaceutical company, engages in the research, development, manufacture, and distribution of cellular therapies for sports medicine and severe burn care markets in North America. The company markets autologous cell therapy products comprising MACI, an autologous cultured chondrocytes on porcine collagen membrane for the repair of symptomatic, and single or multiple full-thickness cartilage defects of the knee; Epicel, a permanent skin replacement humanitarian use device for the treatment of adult and pediatric patients with deep-dermal or full-thickness burns; and NexoBrid, a biological orphan product for eschar removal in adults with deep partial-thickness and/or full-thickness thermal burns. The company was formerly known as Aastrom Biosciences, Inc. Vericel Corporation was incorporated in 1989 and is headquartered in Cambridge, Massachusetts.
About Avalo Therapeutics
Avalo Therapeutics, Inc., a clinical stage biotechnology company, focuses on the development of therapies for the treatment of immune dysregulation in the Unites States. The company's drug candidates include AVTX-009, an Anti-IL-1ß monoclonal antibody which is under Phase I targeting inflammatory diseases; and AVTX-008, a fully human B and T lymphocyte attenuator agonist fusion protein for the treatment of immune dysregulation disorders. It also develops Quisovalimab (AVTX-002), an Anti-LIGHT mAb which is in phase II for immune-inflammatory diseases. The company was formerly known as Cerecor Inc. and changed its name to Avalo Therapeutics, Inc. in August 2021. Avalo Therapeutics, Inc. was incorporated in 2011 and is headquartered in Rockville, Maryland.