Aileron Therapeutics (NASDAQ:ALRN – Get Rating) and Agios Pharmaceuticals (NASDAQ:AGIO – Get Rating) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.
Risk & Volatility
Aileron Therapeutics has a beta of 2.03, meaning that its share price is 103% more volatile than the S&P 500. Comparatively, Agios Pharmaceuticals has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.
Profitability
This table compares Aileron Therapeutics and Agios Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aileron Therapeutics | N/A | -103.08% | -88.68% |
| Agios Pharmaceuticals | -1,627.82% | -20.68% | -18.52% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aileron Therapeutics | 0 | 2 | 0 | 0 | 2.00 |
| Agios Pharmaceuticals | 0 | 1 | 3 | 0 | 2.75 |
Aileron Therapeutics currently has a consensus price target of $1.00, indicating a potential downside of 28.50%. Agios Pharmaceuticals has a consensus price target of $37.75, indicating a potential upside of 76.57%. Given Agios Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Agios Pharmaceuticals is more favorable than Aileron Therapeutics.
Earnings & Valuation
This table compares Aileron Therapeutics and Agios Pharmaceuticals’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aileron Therapeutics | N/A | N/A | -$27.33 million | ($6.60) | -0.21 |
| Agios Pharmaceuticals | $14.24 million | 83.00 | -$231.80 million | ($4.24) | -5.04 |
Aileron Therapeutics has higher earnings, but lower revenue than Agios Pharmaceuticals. Agios Pharmaceuticals is trading at a lower price-to-earnings ratio than Aileron Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
Agios Pharmaceuticals beats Aileron Therapeutics on 7 of the 11 factors compared between the two stocks.
About Aileron Therapeutics
Aileron Therapeutics, Inc. is a clinical stage biopharmaceutical company, which engages in the development and commercialization of a novel class of therapeutics for the treatment of cancer and other diseases. It focuses on its lead product candidate, ALRN-6924, which is a cell-permeating peptide that disrupts the interaction of p53 suppressors MDM2 and MDMX with tumor suppressor p53 to reactivate tumor suppression in non-mutant, or wild-type, p53 cancers. The company was founded by Gregory L. Verdine, Rosana Kapeller, Huw M. Nash, Joseph A. Yanchik III, and Loren David Walensky on August 6, 2001 and is headquartered in Waltham, MA.
About Agios Pharmaceuticals
Agios Pharmaceuticals, Inc. is a biopharmaceutical company engaged in the discovery and development of novel investigational medicines to treat cancer and rare genetic diseases. It focuses on diseases that are directly caused by changes in genes or chromosomes, often passed from one generation to the next. The company was founded by Lewis Clayton Cantley, Tak W. Mak, Craig B. Thompson and Shin-Shan Michael Su on August 7, 2007 and is headquartered in Cambridge, MA.
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