Spero Therapeutics (NASDAQ:SPRO) and Avalo Therapeutics (NASDAQ:AVTX) Critical Contrast

Spero Therapeutics (NASDAQ:SPRO) and Avalo Therapeutics (NASDAQ:AVTX) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Profitability

This table compares Spero Therapeutics and Avalo Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spero Therapeutics	14.74%	25.67%	14.26%
Avalo Therapeutics	N/A	-306.52%	113.09%

Risk & Volatility

Spero Therapeutics has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Avalo Therapeutics has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.

Insider and Institutional Ownership

25.6% of Spero Therapeutics shares are owned by institutional investors. Comparatively, 87.1% of Avalo Therapeutics shares are owned by institutional investors. 4.5% of Spero Therapeutics shares are owned by insiders. Comparatively, 0.3% of Avalo Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Spero Therapeutics and Avalo Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spero Therapeutics	0	0	3	0	3.00
Avalo Therapeutics	0	1	1	0	2.50

Spero Therapeutics currently has a consensus price target of $5.00, indicating a potential upside of 281.68%. Given Spero Therapeutics’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Spero Therapeutics is more favorable than Avalo Therapeutics.

Earnings & Valuation

This table compares Spero Therapeutics and Avalo Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spero Therapeutics	$103.78 million	0.68	$22.81 million	$0.33	3.97
Avalo Therapeutics	$1.92 million	7.10	-$31.54 million	N/A	N/A

Spero Therapeutics has higher revenue and earnings than Avalo Therapeutics.

Summary

Spero Therapeutics beats Avalo Therapeutics on 8 of the 12 factors compared between the two stocks.

About Spero Therapeutics

Spero Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on identifying, developing, and commercializing novel treatments for multi-drug resistant (MDR) bacterial infections and rare diseases in the United States. The company’s product candidates include tebipenem pivoxil hydrobromide (HBr), an oral carbapenem-class antibiotic to treat complicated urinary tract infections, including pyelonephritis for adults; SPR206, an intravenous-administered antibiotic against MDR Gram-negative pathogens comprising carbapenem-resistant enterobacterales (CRE), acinetobacter baumannii, and pseudomonas aeruginosa, as well as negative bacterial infections in the hospital setting; and SPR720, a novel oral antibiotic agent for the treatment of non-tuberculous mycobacterial pulmonary disease. It has license agreement with Meiji Seika Pharma Co., Ltd. to support the development of tebipenem HBr; Everest Medicines to develop, manufacture, and commercialize SPR206 in Greater China, South Korea, and Southeast Asian countries; and Vertex Pharmaceuticals Incorporated for patents relating to SPR720, as well as SPR719, an active metabolite. Spero Therapeutics, Inc. was founded in 2013 and is headquartered in Cambridge, Massachusetts.

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.