Reviewing ALX Oncology (NASDAQ:ALXO) & Lantern Pharma (NASDAQ:LTRN)

ALX Oncology (NASDAQ:ALXO) and Lantern Pharma (NASDAQ:LTRN) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Risk and Volatility

ALX Oncology has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, Lantern Pharma has a beta of 2.1, suggesting that its share price is 110% more volatile than the S&P 500.

Valuation & Earnings

This table compares ALX Oncology and Lantern Pharma”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ALX Oncology	N/A	N/A	-$101.69 million	($1.49)	-1.34
Lantern Pharma	N/A	N/A	-$17.12 million	($1.45)	-2.29

Lantern Pharma is trading at a lower price-to-earnings ratio than ALX Oncology, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ALX Oncology and Lantern Pharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ALX Oncology	N/A	-124.06%	-85.57%
Lantern Pharma	N/A	-198.34%	-129.08%

Insider and Institutional Ownership

98.0% of ALX Oncology shares are held by institutional investors. Comparatively, 28.6% of Lantern Pharma shares are held by institutional investors. 21.0% of ALX Oncology shares are held by company insiders. Comparatively, 8.5% of Lantern Pharma shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for ALX Oncology and Lantern Pharma, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ALX Oncology	1	0	5	0	2.67
Lantern Pharma	1	0	0	0	1.00

ALX Oncology currently has a consensus target price of $4.60, suggesting a potential upside of 131.16%. Given ALX Oncology’s stronger consensus rating and higher possible upside, analysts plainly believe ALX Oncology is more favorable than Lantern Pharma.

Summary

ALX Oncology beats Lantern Pharma on 8 of the 11 factors compared between the two stocks.

About ALX Oncology

ALX Oncology Holdings Inc., a clinical-stage immuno-oncology company, focuses on developing therapies for cancer patients in the United States. The company's lead product candidate is Evorpacept, a CD47 blocking therapeutic biologic in development as a combination therapy with other anti-cancer agents, including ASPEN-06, under Phase 2 clinical study for treating Gastric/GEJ cancer; ASPEN-07, under Phase 1 clinical study for treating urothelial cancer; and ASPEN-03 and ASPEN-04, both under Phase 2 clinical study for treating head and neck squamous cell carcinoma. It also has collaboration agreement for Evorpacept combination programs comprising Jazz Pharmaceuticals plc for zanidatamab, under Phase 1 trial for the treatment of breast cancer and other solid tumors; Quantum Leap Healthcare collaborative with an ADC, fam-trastuzumab deruxtecan-nxki, under Phase 1 trial for the treatment of patients with breast cancer; MD Anderson Cancer Center with rituximab and lenalidomide for the treatment of patients with indolent and aggressive NHL; Sanofi with isatuximab and dexamethasone, under Phase 1/2 trial for the treatment of patients with relapsed or refractory multiple myeloma; Academic Gastrointestinal Cancer Consortium with pembrolizumab and cetuximab, under Phase 2 trial to treat refractory microsatellite stable metastatic colorectal cancer; and University of Pittsburgh with liposomal doxorubicin and pembrolizumab, under Phase 2 trial recurrent platinum-resistant ovarian cancer. In addition, the company has collaboration agreement with Tallac Therapeutics, Inc. for the development of ALTA-002, a potent immune activator targeted to myeloid cells in the tumor to promote innate and adaptive anti-cancer immune responses. It also has license agreements with Board of Trustees of the Leland Stanford Junior University, Selexis SA, and Crystal Bioscience, Inc. The company was incorporated in 2015 and is headquartered in South San Francisco, California.

About Lantern Pharma

Lantern Pharma Inc., a clinical stage biotechnology company, focuses on artificial intelligence, machine learning, and genomic data to streamline the drug development process. Its product pipeline comprises LP-300, which is in phase 2 clinical trial in combination therapy for never-smokers with non-small cell lung cancer adenocarcinoma; LP-184, which is in phase 1 clinical trial for the treatment of solid tumor, such as pancreatic, breast, bladder, and lung cancers, and glioblastoma and other central nervous system cancers; and LP-284, which is in phase 1 clinical trial for the treatment of non-Hodgkin's lymphomas, including mantle cell lymphoma and double hit lymphoma. The company develops STAR-001, which is in preclinical development for the treatment of glioblastoma, brain metastases, atypical teratoid rhabdoid tumors, and pediatric rare disease designation. In addition, it provides ADC program, an antibody drug conjugate therapeutic approach for cancer treatment. Further, the company's artificial intelligence platform RADR uses big data analytics and machine learning for combining molecular data. Lantern Pharma Inc. has a strategic AI-driven collaboration with Oregon Therapeutics to optimize the development of its first-in-class protein disulfide isomerase inhibitor drug candidate XCE853 in novel and targeted cancer indications. The company was incorporated in 2013 and is headquartered in Dallas, Texas.