Head to Head Review: Avalo Therapeutics (NASDAQ:AVTX) & PaxMedica (NASDAQ:PXMD)

Avalo Therapeutics (NASDAQ:AVTX) and PaxMedica (NASDAQ:PXMD) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Volatility & Risk

Avalo Therapeutics has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, PaxMedica has a beta of -0.55, meaning that its stock price is 155% less volatile than the S&P 500.

Valuation & Earnings

This table compares Avalo Therapeutics and PaxMedica”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avalo Therapeutics	$807,000.00	12.22	-$31.54 million	N/A	N/A
PaxMedica	N/A	N/A	-$18.29 million	N/A	N/A

PaxMedica has lower revenue, but higher earnings than Avalo Therapeutics.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Avalo Therapeutics and PaxMedica, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avalo Therapeutics	0	0	1	0	3.00
PaxMedica	0	0	1	0	3.00

PaxMedica has a consensus price target of $3.00, indicating a potential upside of 2,492.91%. Given PaxMedica’s higher probable upside, analysts clearly believe PaxMedica is more favorable than Avalo Therapeutics.

Institutional and Insider Ownership

87.1% of Avalo Therapeutics shares are held by institutional investors. Comparatively, 4.9% of PaxMedica shares are held by institutional investors. 0.3% of Avalo Therapeutics shares are held by insiders. Comparatively, 1.0% of PaxMedica shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Avalo Therapeutics	N/A	-306.52%	113.09%
PaxMedica	N/A	-3,167.89%	-560.35%

Summary

Avalo Therapeutics beats PaxMedica on 5 of the 8 factors compared between the two stocks.

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.

About PaxMedica

PaxMedica, Inc., a clinical stage biopharmaceutical company, focuses on the development of anti-purinergic drug therapies for the treatment of disorders with intractable neurologic symptoms. Its lead product candidate is PAX-101 that is in Phase 3 clinical trials, an intravenous formulation of suramin for the treatment of autism spectrum disorder, myalgic encephalomyelitis/chronic fatigue syndrome, long COVID-19 syndrome, fragile X syndrome, human African trypanosomiasis (HAT), and fragile X-associated tremor/ataxia syndrome. The company is developing PAX-102, an intranasal formulation of suramin for neurologic indications, as well as other new chemical entities that are targeted and selective antagonists of purine receptor subtypes; and PAX-HAT-301 for the treatment of HAT. It has a research collaboration agreement with PolarMar Health for Phase II clinical trial in austism spectrum disorder for emodin, which retains the rights for PolarMar to develop and commercialize any non-prescription supplement form of the product, and for PaxMedica, Inc. to retain exclusive rights to develop and commercialize a highly purified form of emodin. The company was formerly known as Purinix Pharmaceuticals LLC and changed its name to PaxMedica, Inc. in April 2020. PaxMedica, Inc. was incorporated in 2018 and is based in Tarrytown, New York.