Reviewing Applied Therapeutics (NASDAQ:APLT) & Alvotech (NASDAQ:ALVO)

Applied Therapeutics (NASDAQ:APLT) and Alvotech (NASDAQ:ALVO) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Profitability

This table compares Applied Therapeutics and Alvotech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Applied Therapeutics	N/A	-340.84%	-175.00%
Alvotech	-36.31%	N/A	-11.73%

Risk & Volatility

Applied Therapeutics has a beta of 2.08, meaning that its share price is 108% more volatile than the S&P 500. Comparatively, Alvotech has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500.

Institutional and Insider Ownership

98.3% of Applied Therapeutics shares are owned by institutional investors. 1.6% of Applied Therapeutics shares are owned by company insiders. Comparatively, 0.5% of Alvotech shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Applied Therapeutics and Alvotech”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Therapeutics	$1.00 million	15.86	-$105.62 million	($0.10)	-1.03
Alvotech	$588.90 million	2.56	$27.92 million	($0.61)	-8.20

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Applied Therapeutics and Alvotech, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Therapeutics	1	2	0	0	1.67
Alvotech	1	2	4	0	2.43

Applied Therapeutics presently has a consensus price target of $1.00, suggesting a potential upside of 870.87%. Alvotech has a consensus price target of $8.50, suggesting a potential upside of 70.00%. Given Applied Therapeutics’ higher possible upside, equities analysts plainly believe Applied Therapeutics is more favorable than Alvotech.

Summary

Applied Therapeutics beats Alvotech on 8 of the 14 factors compared between the two stocks.

About Applied Therapeutics

Applied Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in the development of a pipeline of novel product candidates against validated molecular targets in indications of high unmet medical need in the United States. The company's lead product candidate is AT-007 (also called govorestat) that has completed phase 3 for the treatment of galactosemia in healthy volunteers and adults, in pediatric clinical study for the treatment of galactosemia in kids, for treating enzyme sorbitol dehydrogenase, and for the treatment of phosphomannomutase enzyme-CDG. It also develops AT-001 (also called caficrestat) that is in phase 3 clinical trials to treat diabetic cardiomyopathy, as well as for the treatment of diabetic peripheral neuropathy; and AT-003, which is in preclinical studies for the treatment diabetic retinopathy. The company has exclusive license and supply agreement with Mercury Pharma Group Limited to commercialize drug products containing AT-007. Applied Therapeutics, Inc. was incorporated in 2016 and is headquartered in New York, New York.

About Alvotech

Alvotech, through its subsidiaries, develops and manufactures biosimilar medicines for patients worldwide. It offers biosimilar products in the therapeutic areas of autoimmune, eye, and bone disorders, as well as cancer. The company's lead program is AVT02, a high concentration formulation biosimilar to Humira to treat various inflammatory conditions, including rheumatoid arthritis, psoriatic arthritis, Crohn's disease, ulcerative colitis, plaque psoriasis, and other indications; AVT04, a biosimilar to Stelara to treat various inflammatory conditions comprising psoriatic arthritis, Crohn's disease, ulcerative colitis, plaque psoriasis, and other indications; AVT06, a biosimilar to Eylea to treat various conditions, such as age-related macular degeneration, macular edema, and diabetic retinopathy; and AVT03, a biosimilar to Xgeva and Prolia, which is in the pre-clinical phase to treat prevent bone fracture, spinal cord compression, and the need for radiation or bone surgery in patients with certain types of cancer, as well as prevent bone loss and increase bone mass. In addition, it offers AVT05, a biosimilar to Simponi and Simponi Aria, which is in early phase development to treat various inflammatory conditions, including rheumatoid arthritis, psoriatic arthritis, ulcerative colitis, and other indications; AVT16, a biosimilar to an Entyvio product; AVT23, a biosimilar to Xolair, which is in late-stage development to treat nasal polyps; and AVT33, a biosimilar to an Keytruda product. Alvotech was founded in 2013 and is based in Luxembourg, Luxembourg.