Critical Analysis: Alector (NASDAQ:ALEC) & Genocea Biosciences (NASDAQ:GNCAQ)

Alector (NASDAQ:ALECGet Free Report) and Genocea Biosciences (NASDAQ:GNCAQGet Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Insider and Institutional Ownership

68.7% of Alector shares are owned by institutional investors. 14.0% of Alector shares are owned by insiders. Comparatively, 1.6% of Genocea Biosciences shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Alector and Genocea Biosciences, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alector 0 3 4 0 2.57
Genocea Biosciences 0 0 0 0 N/A

Alector currently has a consensus price target of $15.13, suggesting a potential upside of 156.36%. Given Alector’s higher probable upside, research analysts plainly believe Alector is more favorable than Genocea Biosciences.

Risk & Volatility

Alector has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Genocea Biosciences has a beta of 3.19, suggesting that its share price is 219% more volatile than the S&P 500.

Valuation & Earnings

This table compares Alector and Genocea Biosciences’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alector $133.62 million 3.70 -$133.31 million ($1.72) -3.43
Genocea Biosciences $1.64 million 0.00 -$33.20 million N/A N/A

Genocea Biosciences has lower revenue, but higher earnings than Alector.

Profitability

This table compares Alector and Genocea Biosciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alector -140.18% -67.57% -18.57%
Genocea Biosciences N/A N/A N/A

Summary

Alector beats Genocea Biosciences on 6 of the 11 factors compared between the two stocks.

About Alector

(Get Free Report)

Alector, Inc., a clinical stage biopharmaceutical company, develops therapies for the treatment of neurodegeneration diseases. Its products include AL001, an immune activity in the brain with genetic links to multiple neurodegenerative disorders, which is in Phase III clinical trial for the treatment of frontotemporal dementia, Alzheimer's, Parkinson's, and amyotrophic lateral sclerosis diseases; and AL101 that is in Phase I clinical trial for the treatment of neurodegenerative diseases, including Alzheimer's and Parkinson's diseases. The company also offers AL002, a product candidate that is in Phase II clinical trial for the treatment of Alzheimer's disease; and AL003, which is in Phase I clinical trial for the treatment of Alzheimer's disease. Its pipeline products include AL044 that targets MS4A4A, a risk gene for Alzheimer's disease. Alector, Inc. has a collaboration agreement with Adimab, LLC for the research and development of antibodies; and a strategic collaboration agreement with GlaxoSmithKline plc for the development and commercialization of monoclonal antibodies, such as AL001, AL002, and AL101 to treat neurodegenerative diseases. Alector, Inc. was founded in 2013 and is headquartered in South San Francisco, California.

About Genocea Biosciences

(Get Free Report)

Genocea Biosciences, Inc., a biopharmaceutical company, discovers and develops novel cancer immunotherapies. The company uses its proprietary discovery platform, ATLAS, which profiles each patient's CD4+ and CD8+ T cell immune responses to every target or antigen identified by next-generation sequencing of that patient's tumor. Its products include GEN-011, an adoptive T cell therapy, which is in Phase 1/2a clinical trials for the treatment of solid tumors; and GEN-009, a neoantigen vaccine candidate, which is in Phase 1/2a clinical trials that delivers adjuvanted synthetic long peptides spanning ATLAS-identified anti-tumor neoantigens. The company was incorporated in 2006 and is based in Cambridge, Massachusetts. On July 5, 2022, Genocea Biosciences, Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Massachusetts. The plan was later approved as Chapter 11 liquidation on May 11, 2023.

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