SpringWorks Therapeutics (NASDAQ:SWTX – Get Free Report) and Arcellx (NASDAQ:ACLX – Get Free Report) are both mid-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.
Insider & Institutional Ownership
96.0% of Arcellx shares are held by institutional investors. 7.6% of SpringWorks Therapeutics shares are held by insiders. Comparatively, 6.2% of Arcellx shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares SpringWorks Therapeutics and Arcellx’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SpringWorks Therapeutics | N/A | -66.48% | -57.28% |
| Arcellx | -38.39% | -13.11% | -7.11% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SpringWorks Therapeutics | $5.45 million | 492.39 | -$325.10 million | ($5.14) | -7.05 |
| Arcellx | $110.32 million | 26.02 | -$70.69 million | ($1.03) | -52.10 |
Arcellx has higher revenue and earnings than SpringWorks Therapeutics. Arcellx is trading at a lower price-to-earnings ratio than SpringWorks Therapeutics, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
SpringWorks Therapeutics has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Arcellx has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and price targets for SpringWorks Therapeutics and Arcellx, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SpringWorks Therapeutics | 0 | 0 | 6 | 0 | 3.00 |
| Arcellx | 0 | 0 | 13 | 1 | 3.07 |
SpringWorks Therapeutics presently has a consensus price target of $68.83, indicating a potential upside of 90.04%. Arcellx has a consensus price target of $78.00, indicating a potential upside of 45.36%. Given SpringWorks Therapeutics’ higher possible upside, equities research analysts clearly believe SpringWorks Therapeutics is more favorable than Arcellx.
Summary
Arcellx beats SpringWorks Therapeutics on 9 of the 15 factors compared between the two stocks.
About SpringWorks Therapeutics
SpringWorks Therapeutics, Inc., a commercial-stage biopharmaceutical company, engages in the development and commercialization of medicines for underserved patient populations suffering from rare diseases and cancer. Its lead product candidate is OGSIVEO (nirogacestat), an oral small molecule gamma secretase inhibitor that is in Phase III DeFi trial for the treatment of desmoid tumors; and Nirogacestat, is also in Phase 2 clinical development as a monotherapy for the treatment of ovarian granulosa cell tumors (GCT), a subtype of ovarian cancer. The company is also involved in the development of mirdametinib, an oral small molecule MEK inhibitor that is in Phase 2b clinical trials for the treatment of neurofibromatosis type 1-associated plexiform neurofibromas (NF1-PN); mirdametinib + lifirafenib, a combination therapy that is in Phase 1b clinical trial in patients with advanced or refractory solid tumors; and mirdametinib in monotherapy and combination approaches to treat other genetically defined solid tumors, including Phase 1/2 clinical trial for the treatment of pediatric and young adult patients with low-grade gliomas. In addition, it develops Brimarafenib (BGB-3245), an oral selective small molecule inhibitor of monomeric and dimeric forms of activating BRAF mutations. The company has collaborations with BeiGene, Ltd. and GlaxoSmithKline LLC; and license agreements with Pfizer Inc. for nirogacestat and mirdametinib. It also has a license agreement with Katholieke Universiteit Leuven and the Flanders Institute for Biotechnology for a portfolio of novel small molecule inhibitors of the TEA Domain; and Dana-Farber Cancer Institute for a portfolio of novel small molecule inhibitors of Epidermal Growth Factor Receptor. The company was founded in 2017 and is headquartered in Stamford, Connecticut.
About Arcellx
Arcellx, Inc., together with its subsidiary, engages in the development of various immunotherapies for patients with cancer and other incurable diseases in the United States. The company's lead ddCAR product candidate is anitocabtagene autoleucel, which is in phase 2 clinical trial for the treatment of patients with relapsed or refractory multiple myeloma (rrMM). It also develops ACLX-001, a product candidate in Phase 1 clinical trials targeting BCMA to treat rrMM; and ACLX-002, which is in Phase 1 clinical trials that targets CD123 for treating relapsed or refractory acute myeloid leukemia (AML) and myelodysplastic syndrome (MDS). In addition, the company's preclinical product includes ACLX-003 for the treatment of AML and MDS. Further, it focuses on the development of product candidates for solid tumor programs. It has a strategic alliance with Kite Pharma, Inc. to co-develop and co-commercialize anitocabtagene autoleucel. The company was formerly known as Encarta Therapeutics, Inc. and changed its name to Arcellx, Inc. in January 2016. Arcellx, Inc. was incorporated in 2014 and is headquartered in Redwood City, California.
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