Reviewing Allogene Therapeutics (NASDAQ:ALLO) and Iovance Biotherapeutics (NASDAQ:IOVA)

Iovance Biotherapeutics (NASDAQ:IOVA) and Allogene Therapeutics (NASDAQ:ALLO) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Valuation & Earnings

This table compares Iovance Biotherapeutics and Allogene Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iovance Biotherapeutics	$164.07 million	7.00	-$372.18 million	($1.20)	-2.41
Allogene Therapeutics	$20,000.00	15,731.10	-$257.59 million	($0.98)	-1.43

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Iovance Biotherapeutics and Allogene Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iovance Biotherapeutics	2	7	6	0	2.27
Allogene Therapeutics	2	2	8	0	2.50

Iovance Biotherapeutics presently has a consensus price target of $11.10, indicating a potential upside of 283.42%. Allogene Therapeutics has a consensus price target of $8.44, indicating a potential upside of 503.17%. Given Allogene Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Allogene Therapeutics is more favorable than Iovance Biotherapeutics.

Volatility & Risk

Iovance Biotherapeutics has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Allogene Therapeutics has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Institutional and Insider Ownership

77.0% of Iovance Biotherapeutics shares are held by institutional investors. Comparatively, 83.6% of Allogene Therapeutics shares are held by institutional investors. 10.3% of Iovance Biotherapeutics shares are held by insiders. Comparatively, 13.2% of Allogene Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Iovance Biotherapeutics and Allogene Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iovance Biotherapeutics	-158.78%	-55.24%	-43.11%
Allogene Therapeutics	N/A	-57.79%	-43.11%

Summary

Allogene Therapeutics beats Iovance Biotherapeutics on 10 of the 13 factors compared between the two stocks.

About Iovance Biotherapeutics

Iovance Biotherapeutics, Inc., a commercial-stage biotechnology company, develops and commercializes cell therapies using autologous tumor infiltrating lymphocyte for the treatment of metastatic melanoma and other solid tumor cancers in the United States. The company offers Amtagvi, a tumor-derived autologous T cell immunotherapy used to treat adult patients with unresectable or metastatic melanoma; and Proleukin, an interleukin-2 product for the treatment of patients with metastatic renal cell carcinoma. It also develops lifileucel in combination with pembrolizumab to treat frontline advanced melanoma patients; LN-145 for the treatment of non-small cell lung cancer (NSCLC) and solid tumor cancers; IOV-4001, which is in Phase 1/2 IOV-GM1-201 clinical trial, for the treatment of NSCLC; and lifileucel for gynecological cancers. The company has collaborations and licensing agreements with WuXi Advanced Therapies, Inc.; National Institutes of Health; the National Cancer Institute; H. Lee Moffitt Cancer Center; The University of Texas M.D. Anderson Cancer Center; Cellectis S.A.; Novartis Pharma AG; and Boehringer Ingelheim Biopharmaceuticals GmbH. The company was formerly known as Lion Biotechnologies, Inc. and changed its name to Iovance Biotherapeutics, Inc. in June 2017. Iovance Biotherapeutics, Inc. was incorporated in 2007 and is headquartered in San Carlos, California.

About Allogene Therapeutics

Allogene Therapeutics, Inc., a clinical stage immuno-oncology company, develops and commercializes genetically engineered allogeneic T cell therapies for the treatment of cancer. It develops, manufactures, and commercializes UCART19, an allogeneic chimeric antigen receptor (CAR) T cell product candidate for the treatment of pediatric and adult patients with R/R CD19 positive B-cell acute lymphoblastic leukemia (ALL). The company also develops cemacabtagene ansegedleucel, an engineered allogeneic CAR T cell product candidate that targets CD19 for the treatment of large B-cell lymphoma; and is in Phase 1b clinical trial for the treatment of chronic lymphocytic leukemia. In addition, it is developing ALLO-715, an allogeneic CAR T cell product candidate that is in a Phase 1 clinical trial for treating R/R multiple myeloma; ALLO-605, an allogeneic CAR T cell product candidate that is in a Phase I clinical trial for the treatment of multiple myeloma; ALLO-647, an anti-CD52 monoclonal antibody; CD70 to treat renal cell cancer; ALLO-316, an allogeneic CAR T cell product candidate that is in Phase 1 clinical trial for the treatment of advanced or metastatic RCC; ALLO-329 for the treatment of certain autoimmune diseases; DLL3 for the treatment of small cell lung cancer and other aggressive neuroendocrine tumors; and Claudin 18.2 for the treatment of gastric and pancreatic cancer. The company has license and collaboration agreements with Pfizer Inc.; Servier; Cellectis S.A.; and Notch Therapeutics Inc. It also has a strategic collaboration agreement with The University of Texas MD Anderson Cancer Center for the preclinical and clinical investigation of allogeneic CAR T cell product candidates; and a strategic partnership with Foresight Diagnostics to develop MRD-based In-Vitro Diagnostic for use in ALPHA3. The company was incorporated in 2017 and is headquartered in South San Francisco, California.