Head-To-Head Contrast: Alector (NASDAQ:ALEC) and Ionis Pharmaceuticals (NASDAQ:IONS)

Ionis Pharmaceuticals (NASDAQ:IONS) and Alector (NASDAQ:ALEC) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

93.9% of Ionis Pharmaceuticals shares are owned by institutional investors. Comparatively, 85.8% of Alector shares are owned by institutional investors. 1.8% of Ionis Pharmaceuticals shares are owned by insiders. Comparatively, 8.3% of Alector shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Ionis Pharmaceuticals and Alector”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ionis Pharmaceuticals	$944.00 million	7.77	-$381.39 million	($3.46)	-12.76
Alector	$21.05 million	10.18	-$142.93 million	($1.10)	-1.75

Alector has lower revenue, but higher earnings than Ionis Pharmaceuticals. Ionis Pharmaceuticals is trading at a lower price-to-earnings ratio than Alector, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ionis Pharmaceuticals and Alector’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ionis Pharmaceuticals	-64.76%	-111.08%	-17.41%
Alector	-850.13%	-531.03%	-44.00%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Ionis Pharmaceuticals and Alector, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ionis Pharmaceuticals	1	4	17	0	2.73
Alector	2	4	3	0	2.11

Ionis Pharmaceuticals presently has a consensus price target of $89.20, indicating a potential upside of 101.99%. Alector has a consensus price target of $3.40, indicating a potential upside of 77.08%. Given Ionis Pharmaceuticals’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Ionis Pharmaceuticals is more favorable than Alector.

Risk & Volatility

Ionis Pharmaceuticals has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500. Comparatively, Alector has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.

Summary

Ionis Pharmaceuticals beats Alector on 8 of the 14 factors compared between the two stocks.

About Ionis Pharmaceuticals

Ionis Pharmaceuticals, Inc. discovers and develops RNA-targeted therapeutics in the United States. The company offers SPINRAZA for spinal muscular atrophy (SMA) in pediatric and adult patients; TEGSEDI, an antisense injection for the treatment of polyneuropathy caused by hereditary transthyretin amyloidosis in adults; and WAYLIVRA, an antisense medicine for treatment for familial chylomicronemia syndrome (FCS) and familial partial lipodystrophy. It also develops medicines for various indications that are in phase 3 study, including Eplontersen as a monthly self-administered subcutaneous injection to treat all types of ATTR; Olezarsen for patients with FCS and severe hypertriglyceridemia (SHTG); Donidalorsen for patients with hereditary angioedema; ION363 for patients with amyotrophic lateral sclerosis; Tofersen to inhibit the production of superoxide dismutase 1; Pelacarsen for patients with established cardiovascular disease and elevated lipoprotein(a); and Bepirovirsen to inhibit the production of viral proteins associated with hepatitis B virus. In addition, the company develops IONIS-FB-LRx to inhibit the production of complement factor B and the alternative complement pathway; and ION224 to reduce the production of diacylglycerol acyltransferase 2. It has a strategic collaboration with Biogen for the treatment of neurological disorders; and collaboration and license agreement with Metagenomi, Inc, AstraZeneca, Bayer AG, GlaxoSmithKline plc, Novartis, Roche, Swedish Orphan Biovitrum AB, and PTC Therapeutics. The company was incorporated in 1989 and is based in Carlsbad, California.

About Alector

Alector, Inc., a clinical stage biopharmaceutical company, develops therapies for the treatment of neurodegeneration diseases. Its products include AL001, an immune activity in the brain with genetic links to multiple neurodegenerative disorders, which is in Phase III clinical trial for the treatment of frontotemporal dementia, Alzheimer's, Parkinson's, and amyotrophic lateral sclerosis diseases; and AL101 that is in Phase I clinical trial for the treatment of neurodegenerative diseases, including Alzheimer's and Parkinson's diseases. The company also offers AL002, a product candidate that is in Phase II clinical trial for the treatment of Alzheimer's disease. Alector, Inc. has a collaboration agreement with Adimab, LLC for the research and development of antibodies; and a strategic collaboration agreement with GlaxoSmithKline plc for the development and commercialization of monoclonal antibodies, such as AL001 and AL101 to treat neurodegenerative diseases. The company was founded in 2013 and is headquartered in South San Francisco, California.