Theratechnologies (NASDAQ:THTX) vs. Aileron Therapeutics (NASDAQ:ALRN) Head to Head Survey

Theratechnologies (NASDAQ:THTX) and Aileron Therapeutics (NASDAQ:ALRN) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, risk, profitability and valuation.

Institutional and Insider Ownership

90.9% of Aileron Therapeutics shares are owned by institutional investors. 5.1% of Aileron Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Theratechnologies has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Aileron Therapeutics has a beta of 2.24, indicating that its stock price is 124% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Theratechnologies and Aileron Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Theratechnologies	0	0	0	0	0.00
Aileron Therapeutics	0	0	1	1	3.50

Aileron Therapeutics has a consensus price target of $19.00, suggesting a potential upside of 0.00%. Given Aileron Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Aileron Therapeutics is more favorable than Theratechnologies.

Earnings and Valuation

This table compares Theratechnologies and Aileron Therapeutics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Theratechnologies	$81.76 million	0.84	-$23.96 million	($0.10)	-15.00
Aileron Therapeutics	N/A	N/A	-$15.73 million	($3.12)	N/A

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

Profitability

This table compares Theratechnologies and Aileron Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Theratechnologies	-3.75%	N/A	-4.31%
Aileron Therapeutics	N/A	-74.08%	-27.93%

Summary

Aileron Therapeutics beats Theratechnologies on 9 of the 13 factors compared between the two stocks.

About Theratechnologies

Theratechnologies Inc., a biopharmaceutical company, focuses on the development and commercialization of various therapies to address the unmet medical needs in the United States, Canada, and Europe. The company offers EGRIFTA SV for the reduction of excess abdominal fat in human immunodeficiency virus (HIV)-infected patients with lipodystrophy; and Trogarzo for the treatment of HIV-1 infection in heavily treatment-experienced adults with multidrug-resistant HIV-1 infection failing their current antiretroviral regimen. Its pipeline products include F8 Formulation that is in Phase 2b/3 clinical trials for studying tesamorelin for the treatment of nonalcoholic steatohepatitis; multi -dose pen injector for the administration of tesamorelin; SORT1+ Technology Platform for the development of proprietary peptides for cancer drug development targeting SORT1 receptors; Sudocetaxel Zendusortide, which is in Phase 1 Clinical Trial for various solid tumor types, including HR+ breast, triple negative breast, ovarian, endometrial, melanoma, thyroid, small cell lung, and prostate cancers. The company was incorporated in 1993 and is headquartered in Montreal, Canada.

About Aileron Therapeutics

Aileron Therapeutics, Inc., a biopharmaceutical company, focuses on developing medicines to address unmet medical needs in orphan pulmonary and fibrosis indications in the United States. The company's lead product candidate is LTI-03, a peptide, which is in Phase 1b clinical trial for the treatment of idiopathic pulmonary fibrosis (IPF). Its second product candidate is LTI-01, a proenzyme that has completed Phase 1b and Phase 2a clinical trials in LPE patients for the treatment of loculated pleural effusion. The company's pipeline also includes preclinical programs targeting cystic fibrosis and a peptide program focused on the caveolin-1 protein for systemic fibrosis indications. The company was formerly known as Renegade Therapeutics, Inc. and changed its name to Aileron Therapeutics, Inc. in February 2007. Aileron Therapeutics, Inc. was incorporated in 2001 and is headquartered in Austin, Texas.