Contrasting PaxMedica (NASDAQ:PXMD) and Avalo Therapeutics (NASDAQ:AVTX)
by Tristan Rich · The Markets DailyAvalo Therapeutics (NASDAQ:AVTX – Get Free Report) and PaxMedica (NASDAQ:PXMD – Get Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.
Risk and Volatility
Avalo Therapeutics has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, PaxMedica has a beta of -0.55, suggesting that its share price is 155% less volatile than the S&P 500.
Profitability
This table compares Avalo Therapeutics and PaxMedica’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Avalo Therapeutics | N/A | -306.52% | 113.09% |
| PaxMedica | N/A | -3,167.89% | -560.35% |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Avalo Therapeutics and PaxMedica, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avalo Therapeutics | 0 | 0 | 1 | 0 | 3.00 |
| PaxMedica | 0 | 0 | 1 | 0 | 3.00 |
PaxMedica has a consensus target price of $3.00, indicating a potential upside of 2,492.91%. Given PaxMedica’s higher possible upside, analysts clearly believe PaxMedica is more favorable than Avalo Therapeutics.
Earnings and Valuation
This table compares Avalo Therapeutics and PaxMedica”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Avalo Therapeutics | $807,000.00 | 12.22 | -$31.54 million | N/A | N/A |
| PaxMedica | N/A | N/A | -$18.29 million | N/A | N/A |
PaxMedica has lower revenue, but higher earnings than Avalo Therapeutics.
Insider and Institutional Ownership
87.1% of Avalo Therapeutics shares are owned by institutional investors. Comparatively, 4.9% of PaxMedica shares are owned by institutional investors. 0.3% of Avalo Therapeutics shares are owned by company insiders. Comparatively, 1.0% of PaxMedica shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Avalo Therapeutics beats PaxMedica on 5 of the 8 factors compared between the two stocks.
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.
About PaxMedica
PaxMedica, Inc., a clinical stage biopharmaceutical company, focuses on the development of anti-purinergic drug therapies for the treatment of disorders with intractable neurologic symptoms. Its lead product candidate is PAX-101 that is in Phase 3 clinical trials, an intravenous formulation of suramin for the treatment of autism spectrum disorder, myalgic encephalomyelitis/chronic fatigue syndrome, long COVID-19 syndrome, fragile X syndrome, human African trypanosomiasis (HAT), and fragile X-associated tremor/ataxia syndrome. The company is developing PAX-102, an intranasal formulation of suramin for neurologic indications, as well as other new chemical entities that are targeted and selective antagonists of purine receptor subtypes; and PAX-HAT-301 for the treatment of HAT. It has a research collaboration agreement with PolarMar Health for Phase II clinical trial in austism spectrum disorder for emodin, which retains the rights for PolarMar to develop and commercialize any non-prescription supplement form of the product, and for PaxMedica, Inc. to retain exclusive rights to develop and commercialize a highly purified form of emodin. The company was formerly known as Purinix Pharmaceuticals LLC and changed its name to PaxMedica, Inc. in April 2020. PaxMedica, Inc. was incorporated in 2018 and is based in Tarrytown, New York.