Critical Review: Adverum Biotechnologies (NASDAQ:ADVM) & Lexeo Therapeutics (NASDAQ:LXEO)

Adverum Biotechnologies (NASDAQ:ADVMGet Free Report) and Lexeo Therapeutics (NASDAQ:LXEOGet Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Profitability

This table compares Adverum Biotechnologies and Lexeo Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adverum Biotechnologies N/A -90.38% -51.37%
Lexeo Therapeutics N/A -155.79% -51.08%

Analyst Ratings

This is a summary of current ratings and recommmendations for Adverum Biotechnologies and Lexeo Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adverum Biotechnologies 0 0 4 0 3.00
Lexeo Therapeutics 0 0 8 1 3.11

Adverum Biotechnologies currently has a consensus price target of $29.00, indicating a potential upside of 330.91%. Lexeo Therapeutics has a consensus price target of $22.00, indicating a potential upside of 35.80%. Given Adverum Biotechnologies’ higher possible upside, research analysts plainly believe Adverum Biotechnologies is more favorable than Lexeo Therapeutics.

Earnings & Valuation

This table compares Adverum Biotechnologies and Lexeo Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Adverum Biotechnologies $3.60 million 38.81 -$117.17 million ($10.20) -0.66
Lexeo Therapeutics $650,000.00 820.97 -$66.39 million ($22.29) -0.73

Lexeo Therapeutics has lower revenue, but higher earnings than Adverum Biotechnologies. Lexeo Therapeutics is trading at a lower price-to-earnings ratio than Adverum Biotechnologies, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

48.2% of Adverum Biotechnologies shares are held by institutional investors. Comparatively, 60.7% of Lexeo Therapeutics shares are held by institutional investors. 4.2% of Adverum Biotechnologies shares are held by insiders. Comparatively, 4.5% of Lexeo Therapeutics shares are held by 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.

Summary

Lexeo Therapeutics beats Adverum Biotechnologies on 8 of the 13 factors compared between the two stocks.

About Adverum Biotechnologies

(Get Free Report)

Adverum Biotechnologies, Inc., a clinical-stage company, develops gene therapy product candidates to treat ocular diseases. Its lead product candidate is ixoberogene soroparvovec (ADVM-022), a single intravitreal injection gene therapy candidate used for the treatment of patients with wet age-related macular degeneration and diabetic macular edema which is in phase 2 clinical trials. The company is developing ADVM-062 (AAV.7m8-L-opsin), a novel gene therapy product candidate for the treatment of blue cone monochromacy via a single IVT injection. Adverum Biotechnologies, Inc. has license and collaboration agreements with University of California; GenSight Biologics; Lexeo Therapeutics; and Virovek, Inc. The company was formerly known as Avalanche Biotechnologies, Inc. and changed its name to Adverum Biotechnologies, Inc. in May 2016. Adverum Biotechnologies, Inc. was incorporated in 2006 and is headquartered in Redwood City, California.

About Lexeo Therapeutics

(Get Free Report)

Lexeo Therapeutics, Inc. operates as a clinical stage genetic medicine company that focuses on hereditary and acquired diseases. The company develops LX2006, which is an AAVrh10-based gene therapy candidate for the treatment of Friedreich's ataxia (FA) cardiomyopathy; LX2020, an AAVrh10-based gene therapy candidate for the treatment of plakophilin-2 arrhythmogenic cardiomyopathy; LX2021, a gene therapy candidate for the treatment of DSP cardiomyopathy associated with it; and LX2022, a gene therapy candidate for the treatment of hypertrophic cardiomyopathy, or HCM caused by TNNI3 gene. It also develops LX1001, an AAVrh10-based gene therapy candidate for the treatment of APOE4 homozygous; LX1020, a gene therapy candidate for the treatment of APOE4 homozygous; LX1021 for the treatment of APOE4 homozygotes; and LX1004 for the treatment of CLN2 Batten disease. The company was incorporated in 2017 and is based in New York, New York.

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