Financial Review: Arcellx (NASDAQ:ACLX) versus C4 Therapeutics (NASDAQ:CCCC)

C4 Therapeutics (NASDAQ:CCCC) and Arcellx (NASDAQ:ACLX) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for C4 Therapeutics and Arcellx, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
C4 Therapeutics	0	2	3	0	2.60
Arcellx	0	0	13	2	3.13

C4 Therapeutics presently has a consensus target price of $11.60, indicating a potential upside of 241.18%. Arcellx has a consensus target price of $105.93, indicating a potential upside of 56.42%. Given C4 Therapeutics’ higher probable upside, analysts clearly believe C4 Therapeutics is more favorable than Arcellx.

Institutional and Insider Ownership

78.8% of C4 Therapeutics shares are owned by institutional investors. Comparatively, 96.0% of Arcellx shares are owned by institutional investors. 8.6% of C4 Therapeutics shares are owned by insiders. Comparatively, 6.2% of Arcellx 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.

Valuation and Earnings

This table compares C4 Therapeutics and Arcellx”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
C4 Therapeutics	$20.76 million	11.56	-$132.49 million	($1.70)	-2.00
Arcellx	$110.32 million	33.20	-$70.69 million	($0.71)	-95.38

Arcellx has higher revenue and earnings than C4 Therapeutics. Arcellx is trading at a lower price-to-earnings ratio than C4 Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares C4 Therapeutics and Arcellx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
C4 Therapeutics	-313.35%	-42.45%	-27.55%
Arcellx	-25.94%	-8.28%	-5.21%

Risk and Volatility

C4 Therapeutics has a beta of 2.95, suggesting that its stock price is 195% more volatile than the S&P 500. Comparatively, Arcellx has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.

Summary

Arcellx beats C4 Therapeutics on 11 of the 15 factors compared between the two stocks.

About C4 Therapeutics

C4 Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops novel therapeutic candidates to degrade disease-causing proteins for the treatment of cancer, neurodegenerative conditions, and other diseases. Its lead product candidate is CFT7455, an orally bioavailable MonoDAC degrader of protein that is in Phase 1/2 trial targeting IKZF1 and IKZF3 for multiple myeloma and non-Hodgkin lymphomas, including peripheral T-cell lymphoma and mantle cell lymphoma, currently under Phase 1/2 clinical trials. The company is also developing CFT1946, an orally bioavailable BiDAC degrader targeting V600X mutant BRAF to treat melanoma, non-small cell lung cancer (NSCLC), colorectal cancer, and other solid malignancies, currently under Phase 1/2 clinical trials; and CFT8919, an orally bioavailable, allosteric, and mutant-selective BiDAC degrader of epidermal growth factor receptor, or EGFR, with an L858R mutation in NSCLC. It has strategic collaborations with F. Hoffmann-La Roche Ltd and Hoffmann-La Roche Inc.; Biogen MA, Inc.; Betta Pharmaceuticals, Co., Ltd.; and Merck Sharp & Dohme, LLC, as well as Calico Life Sciences LLC. The company was incorporated in 2015 and is headquartered in Watertown, Massachusetts.

About Arcellx

Arcellx, Inc., together with its subsidiary, engages in the development of various immunotherapies for patients with cancer and other incurable diseases in the United States. The company’s lead ddCAR product candidate is anitocabtagene autoleucel, which is in phase 2 clinical trial for the treatment of patients with relapsed or refractory multiple myeloma (rrMM). It also develops ACLX-001, a product candidate in Phase 1 clinical trials targeting BCMA to treat rrMM; and ACLX-002, which is in Phase 1 clinical trials that targets CD123 for treating relapsed or refractory acute myeloid leukemia (AML) and myelodysplastic syndrome (MDS). In addition, the company’s preclinical product includes ACLX-003 for the treatment of AML and MDS. Further, it focuses on the development of product candidates for solid tumor programs. It has a strategic alliance with Kite Pharma, Inc. to co-develop and co-commercialize anitocabtagene autoleucel. The company was formerly known as Encarta Therapeutics, Inc. and changed its name to Arcellx, Inc. in January 2016. Arcellx, Inc. was incorporated in 2014 and is headquartered in Redwood City, California.