Critical Contrast: Lexeo Therapeutics (NASDAQ:LXEO) versus AlloVir (NASDAQ:ALVR)

AlloVir (NASDAQ:ALVR) and Lexeo Therapeutics (NASDAQ:LXEO) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.

Analyst Ratings

This is a summary of recent ratings for AlloVir and Lexeo Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AlloVir	0	0	0	0	0.00
Lexeo Therapeutics	0	0	5	1	3.17

Lexeo Therapeutics has a consensus price target of $23.80, indicating a potential upside of 251.03%. Given Lexeo Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Lexeo Therapeutics is more favorable than AlloVir.

Institutional and Insider Ownership

66.1% of AlloVir shares are owned by institutional investors. Comparatively, 60.7% of Lexeo Therapeutics shares are owned by institutional investors. 32.1% of AlloVir shares are owned by insiders. Comparatively, 4.5% of Lexeo Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares AlloVir and Lexeo Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AlloVir	N/A	N/A	-$190.42 million	($0.88)	-0.52
Lexeo Therapeutics	$650,000.00	344.90	-$66.39 million	($3.16)	-2.15

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AlloVir	N/A	-71.03%	-61.27%
Lexeo Therapeutics	N/A	-57.66%	-48.18%

Summary

Lexeo Therapeutics beats AlloVir on 8 of the 12 factors compared between the two stocks.

About AlloVir

Allovir, Inc., a clinical-stage cell therapy company, engages in the research and development of allogeneic, off-the-shelf multi-virus specific T cell (VST) therapies to prevent and treat devastating viral-associated diseases. The company's lead product is posoleucel, an allogeneic, off-the-shelf VST therapy, to treat BK virus, cytomegalovirus, adenovirus, Epstein-Barr virus, human herpesvirus 6, and JC virus. Its preclinical and clinical development product candidates include ALVR106 for the respiratory syncytial virus, influenza, parainfluenza virus, and human metapneumovirus; ALVR109 to treat SARS-CoV-2 and COVID-19; ALVR107 for treating hepatitis B; and ALVR108. The company was formerly known as ViraCyte, Inc. and changed its name to Allovir, Inc. in May 2019. The company was incorporated in 2013 and is based in Waltham, Massachusetts.

About Lexeo Therapeutics

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.