Alumis (NASDAQ:ALMS – Get Free Report) and Fate Therapeutics (NASDAQ:FATE – Get Free Report) are both small-cap healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.
Profitability
This table compares Alumis and Fate Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alumis | -5,933.46% | -93.15% | -74.50% |
| Fate Therapeutics | -1,941.09% | -73.92% | -45.16% |
Valuation and Earnings
This table compares Alumis and Fate Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alumis | $7.40 million | 114.58 | -$243.32 million | ($3.86) | -1.70 |
| Fate Therapeutics | $6.65 million | 35.55 | -$136.32 million | ($1.03) | -1.89 |
Fate Therapeutics has lower revenue, but higher earnings than Alumis. Fate Therapeutics is trading at a lower price-to-earnings ratio than Alumis, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
97.5% of Fate Therapeutics shares are owned by institutional investors. 33.7% of Alumis shares are owned by insiders. Comparatively, 4.7% of Fate Therapeutics shares are owned 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.
Volatility and Risk
Alumis has a beta of -0.28, indicating that its share price is 128% less volatile than the S&P 500. Comparatively, Fate Therapeutics has a beta of 2.65, indicating that its share price is 165% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Alumis and Fate Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alumis | 1 | 1 | 11 | 1 | 2.86 |
| Fate Therapeutics | 1 | 1 | 4 | 0 | 2.50 |
Alumis presently has a consensus target price of $33.27, indicating a potential upside of 408.06%. Fate Therapeutics has a consensus target price of $5.80, indicating a potential upside of 198.20%. Given Alumis’ stronger consensus rating and higher possible upside, equities analysts clearly believe Alumis is more favorable than Fate Therapeutics.
Summary
Alumis beats Fate Therapeutics on 8 of the 15 factors compared between the two stocks.
About Alumis
Our mission is to significantly improve the lives of patients by replacing broad immunosuppression with targeted therapies. Our name, Alumis, captures our mission to enlighten immunology, and is inspired by the words “allumer”-French for illuminate-and “immunis”-Latin for the immune system. We are a clinical stage biopharmaceutical company with an initial focus on developing our two Tyrosine Kinase 2 (TYK2) inhibitors: ESK-001, a second-generation inhibitor that we are developing to maximize target inhibition and optimize tolerability, and A-005, a central nervous system (CNS) penetrant molecule. ESK-001 has demonstrated significant therapeutic effect in our Phase 2 program in patients with PsO, which we define as moderate-to-severe plaque psoriasis (PsO), and is currently being evaluated in an additional Phase 2 clinical trial in patients with systemic lupus erythematosus (SLE), for which we expect to report results in 2026. With the favorable results in our Phase 2 clinical trial in PsO, we intend to initiate multiple Phase 3 clinical trials of ESK-001 in the second half of 2024 in this indication. TYK2 genetic mutations are associated with a strong protective effect in multiple sclerosis, motivating us to develop our second product candidate, A-005, as a CNS-penetrant, allosteric TYK2 inhibitor for neuroinflammatory and neurodegenerative diseases. In April 2024, we initiated our Phase 1 program of A-005 in healthy volunteers and expect to report initial results by the end of 2024. We utilize our proprietary precision data analytics platform, biological insights and team of experienced research and development experts to deepen our understanding of disease pathologies, accelerate research and development and increase the probability of clinical success. Our collective insights informed our selection of TYK2 as the target for our two lead programs. Beyond TYK2, our proprietary precision data analytics platform and drug discovery expertise have led to the identification of additional preclinical programs that exemplify our precision approach. We recognize that patients living with immune-mediated diseases need alternatives to currently available therapies. Despite recent advances and innovations in the treatment of immune-mediated diseases, many patients continue to suffer, cycling through currently approved therapies while looking for a solution that alleviates the debilitating impact of their disease without life-limiting side effects. Addressing the needs of these patients is why we exist. We are pioneering a precision approach that leverages insights derived from powerful data analytics to select the right target, right molecule, right indication, right patient, right endpoint and right combination to dramatically improve patient outcomes. We believe that combining our insights with an integrated approach to drug development will produce the next generation of treatments to address immune dysfunction. We were founded in January 2021 as a Delaware corporation under the name FL2021-001, Inc. We changed our name to Esker Therapeutics, Inc. in March 2021, and subsequently to Alumis Inc. in January 2022. Our principal executive offices are located at 280 East Grand Avenue, South San Francisco, California.
About Fate Therapeutics
Fate Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops programmed cellular immunotherapies for cancer and immune disorders worldwide. The company's chimeric antigen receptor (CAR)-targeted NK and T-cell product candidates include FT576 to treat multiple myeloma, and FT522, to treat lymphoma and autoimmune disorders. Its CAR T-cell programs include FT819 to treat hematologic malignancies and solid tumors, and FT825 to treat solid tumors. The company has a collaboration and option agreement with Ono Pharmaceutical Co. Ltd. for the development and commercialization of off-the-shelf, iPSC-derived CAR T-cell product candidates for the treatment of cancer. Fate Therapeutics, Inc. was incorporated in 2007 and is headquartered in San Diego, California.
Receive News & Ratings for Alumis Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Alumis and related companies with MarketBeat.com's FREE daily email newsletter.
