Innate Pharma (OTCMKTS:IPHYF) and Alector (NASDAQ:ALEC) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Risk and Volatility

Innate Pharma has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Alector has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Insider & Institutional Ownership

47.0% of Alector shares are held by institutional investors. 13.9% of Alector shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Innate Pharma and Alector, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Innate Pharma 0 1 1 0 2.50
Alector 0 0 7 0 3.00

Innate Pharma presently has a consensus price target of $11.00, suggesting a potential upside of 55.59%. Alector has a consensus price target of $29.67, suggesting a potential upside of 7.10%. Given Innate Pharma’s higher possible upside, research analysts clearly believe Innate Pharma is more favorable than Alector.

Profitability

This table compares Innate Pharma and Alector’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Innate Pharma N/A N/A N/A
Alector -496.65% -45.56% -22.85%

Valuation and Earnings

This table compares Innate Pharma and Alector’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Innate Pharma $96.12 million 5.78 -$23.25 million N/A N/A
Alector $21.22 million 103.12 -$105.39 million ($1.71) -16.20

Innate Pharma has higher revenue and earnings than Alector.

About Innate Pharma

Innate Pharma S.A., a clinical-stage biotechnology company, discovers and develops therapeutic antibodies for the treatment of cancer in France and internationally. It offers IPH4102, an anti-KIR3DL2 humanized cytotoxicity-inducing antibody, which is in Phase I clinical trial for cutaneous T-cell lymphomas; Monalizumab, a checkpoint inhibitor that is in Phase II clinical trial to treat various cancer indications, as well as in Phase I/II clinical trial for the treatment of solid tumors; and IPH5401, a therapeutic antibody that binds and blocks C5a receptors expressed on subsets of myeloid-derived suppressor cells and neutrophils. The company also provides Lirilumab (IPH2102/BMS-986015), a human monoclonal antibody that blocks the interaction between KIR2DL-1,-2,-3 inhibitory receptors and their ligands; IPH52, an anti-CD39 antibody for immuno-oncology; IPH53, an anti-CD73 antibody for immuno-oncology; and IPH4301, an anti-MICA/B therapeutic antibody to treat oncology. In addition, it offers a commercial-stage product, Lumoxiti, an oncology product for treating hairy cell leukemia. The company has licensing agreements with AstraZeneca, Bristol-Myers Squibb, Novo Nordisk A/S, and Sanofi. Innate Pharma S.A. has a clinical trial collaboration with MedImmune. The company was founded in 1999 and is based in Marseille, France.

About Alector

Alector, Inc., a clinical stage biotechnology company, focuses on developing therapies that harness the immune system to cure neurodegenerative diseases. Its products in Phase I clinical trial include AL001, a humanized recombinant monoclonal antibody for the treatment of frontotemporal dementia; and AL002 for the treatment of Alzheimer's disease. The company's preclinical stage products comprise AL101 for the treatment of multiple neurodegenerative disorders; and AL003 for the treatment of Alzheimer's disease. It also has 10 programs under research and development stage. The company was founded in 2013 and is headquartered in South San Francisco, California.

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