Contrasting Avalon GloboCare (NASDAQ:ALBT) and Gilead Sciences (NASDAQ:GILD)
by Michael Walen · The Markets DailyGilead Sciences (NASDAQ:GILD – Get Free Report) and Avalon GloboCare (NASDAQ:ALBT – Get Free Report) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.
Volatility and Risk
Gilead Sciences has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500. Comparatively, Avalon GloboCare has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500.
Valuation & Earnings
This table compares Gilead Sciences and Avalon GloboCare”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gilead Sciences | $27.81 billion | 3.76 | $5.67 billion | $0.36 | 233.17 |
| Avalon GloboCare | $1.30 million | 1.76 | -$16.71 million | ($1.41) | -0.15 |
Gilead Sciences has higher revenue and earnings than Avalon GloboCare. Avalon GloboCare is trading at a lower price-to-earnings ratio than Gilead Sciences, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
83.7% of Gilead Sciences shares are owned by institutional investors. Comparatively, 1.4% of Avalon GloboCare shares are owned by institutional investors. 0.2% of Gilead Sciences shares are owned by insiders. Comparatively, 64.0% of Avalon GloboCare shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Gilead Sciences and Avalon GloboCare, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gilead Sciences | 0 | 12 | 7 | 1 | 2.45 |
| Avalon GloboCare | 0 | 0 | 0 | 0 | N/A |
Gilead Sciences presently has a consensus price target of $82.06, indicating a potential downside of 2.24%. Given Gilead Sciences’ higher probable upside, equities analysts plainly believe Gilead Sciences is more favorable than Avalon GloboCare.
Profitability
This table compares Gilead Sciences and Avalon GloboCare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gilead Sciences | 3.79% | 29.34% | 10.10% |
| Avalon GloboCare | -1,122.78% | N/A | -64.34% |
Summary
Gilead Sciences beats Avalon GloboCare on 12 of the 14 factors compared between the two stocks.
About Gilead Sciences
Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. The company provides Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/ Eviplera, Stribild, Sunlencs, and Atripla products for the treatment of HIV/AIDS; Veklury, an injection for intravenous use, for the treatment of COVID-19; and Epclusa, Harvoni, Vemlidy, and Viread for the treatment of viral hepatitis. It also offers Yescarta, Tecartus, and Trodelvy products for the treatment of oncology; Letairis, an oral formulation for the treatment of pulmonary arterial hypertension; and AmBisome, a liposomal formulation for the treatment of serious invasive fungal infections. The company has collaboration agreements with Arcus Biosciences, Inc.; Merck Sharp & Dohme Corp.; Pionyr Immunotherapeutics Inc.; Tizona Therapeutics, Inc.; Galapagos NV; Janssen Sciences Ireland Unlimited Company; Japan Tobacco, Inc.; Dragonfly Therapeutics, Inc.; Arcellx, Inc.; Everest Medicines; Merck & Co, Inc.; Tentarix Biotherapeutics Inc.; and Assembly Biosciences, Inc. It also has research collaboration, option, and license agreement with Merus N.V. for the discovery of novel dual tumor-associated antigens (TAA) targeting trispecific antibodies. The company was incorporated in 1987 and is headquartered in Foster City, California.
About Avalon GloboCare
Avalon GloboCare Corp., together with its subsidiaries, owns and operates commercial real estate properties in the United States and China. The company develops and delivers transformative cellular therapeutics, precision diagnostics, and clinical laboratory services. Its leading candidates are AVA-001, an anti-CD19 CAR-T, which has completed first-in-human clinical trial for relapsed/refractory (R/R) B-cell lymphoblastic leukemia; and AVA-011 that has completed pre-clinical laboratory studies and undergoing IND-enabling process development stage to generate cGMP-grade AVA-011 CAR-T cells. It is also developing mRNA-based Flash-CAR cell therapy platform. In addition, the company develops Avalon clinical-grade tissue-specific exosome (ACTEX); AVA-Trap, a therapeutic program provides an effective therapeutic option to combat COVID-19 and other life-threatening conditions involving cytokine storms; offers therapeutic and diagnostic targets utilizing QTY-code protein design technology with Massachusetts Institute of Technology (MIT), including using the QTY code protein design technology for development of a hemofiltration device to treat Cytokine Storm; and provides co-development of next generation, transposon-based, multi-target CAR-T, CAR-NK, and other immune effector cell therapeutic modalities with Arbele Limited. Avalon GloboCare Corp. has strategic partnership with HydroPeptide, LLC to engage in co-development and commercialization of a series of clinical-grade, exosome-based cosmeceutical, and orthopedic products; and corporate research agreement with the University of Pittsburgh of the Commonwealth System of Higher Education. The company was founded in 2016 and is headquartered in Freehold, New Jersey.