Critical Survey: AlloVir (NASDAQ:ALVR) vs. Solid Biosciences (NASDAQ:SLDB)

Solid Biosciences (NASDAQ:SLDB) and AlloVir (NASDAQ:ALVR) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Volatility and Risk

Solid Biosciences has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500. Comparatively, AlloVir has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

Valuation and Earnings

This table compares Solid Biosciences and AlloVir”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solid Biosciences	$8.09 million	43.01	-$96.01 million	($3.04)	-1.48
AlloVir	N/A	N/A	-$190.42 million	($20.23)	-0.52

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

Profitability

This table compares Solid Biosciences and AlloVir’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solid Biosciences	N/A	-58.75%	-47.84%
AlloVir	N/A	-71.03%	-61.27%

Analyst Ratings

This is a breakdown of current ratings and price targets for Solid Biosciences and AlloVir, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solid Biosciences	0	0	8	4	3.33
AlloVir	0	0	0	0	0.00

Solid Biosciences presently has a consensus price target of $15.67, suggesting a potential upside of 248.92%. Given Solid Biosciences’ stronger consensus rating and higher possible upside, analysts clearly believe Solid Biosciences is more favorable than AlloVir.

Institutional and Insider Ownership

81.5% of Solid Biosciences shares are owned by institutional investors. Comparatively, 66.1% of AlloVir shares are owned by institutional investors. 13.6% of Solid Biosciences shares are owned by company insiders. Comparatively, 32.1% of AlloVir shares are owned 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.

Summary

Solid Biosciences beats AlloVir on 11 of the 13 factors compared between the two stocks.

About Solid Biosciences

Solid Biosciences Inc., a life science company, develops therapies for neuromuscular and cardiac diseases in the United States. The company's lead product candidate is SGT-003, a gene transfer candidate for the treatment of Duchenne muscular dystrophy; and SGT-501 to treat Catecholaminergic polymorphic ventricular tachycardia. It is also developing AVB-401 for the treatment of BAG3-mediated dilated cardiomyopathy; SGT-601 to treat a rare cardiac disease characterized by mutations in the gene that codes for cardiac troponin T protein, which helps coordinate contraction of the heart muscle; SGT-701 for treatment of rare inherited disease characterized by mutations in the RBM20 gene, a cardiac splicing factor that regulates alternative splicing, and codes for RNA binding motif protein 20; and AVB-202-TT to treat Friedreich's ataxia, as well as other drugs for the treatment of cardiac and other diseases. In addition, the company is involved in developing platform technologies, including capsid libraries and dual gene expression, a technology for packaging multiple transgenes into one capsid. The company has collaboration and license agreement with Ultragenyx Pharmaceutical Inc. to develop and commercialize new gene therapies for Duchenne; and a license agreement with the University of Washington, University of Missouri, and University of Florida. Solid Biosciences Inc. was incorporated in 2013 and is headquartered in Charlestown, Massachusetts.

About AlloVir

AlloVir, Inc. engages in the research, development and commercialization of off-the-shelf VST therapies to prevent and treat severe viral-associated diseases. It develops novel cell therapies with a focus on restoring natural immunity against life-threatening virus-associated diseases in patients with severely weakened immune systems. The firm’s technology platforms deliver commercially scalable solutions by leveraging off-the-shelf, allogeneic, multi-virus specific T-cells targeting devastating viral pathogens for immunocompromised patients under viral attack. The company was founded by Malcolm K. Brenner, Juan F. Vera, Helen E. Heslop, Cliona M. Rooney, John R. Wilson, and Ann M. Leen in August 2013 and is headquartered in Waltham, MA.