Krystal Biotech (NASDAQ:KRYS – Get Free Report) and Alvotech (NASDAQ:ALVO – Get Free Report) are both mid-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Institutional & Insider Ownership
86.3% of Krystal Biotech shares are held by institutional investors. 13.7% of Krystal Biotech shares are held by company insiders. Comparatively, 0.5% of Alvotech shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Krystal Biotech and Alvotech”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Krystal Biotech | $333.45 million | 11.46 | $10.93 million | $4.16 | 31.79 |
| Alvotech | $489.68 million | 5.96 | -$551.73 million | $0.37 | 26.16 |
Krystal Biotech has higher earnings, but lower revenue than Alvotech. Alvotech is trading at a lower price-to-earnings ratio than Krystal Biotech, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for Krystal Biotech and Alvotech, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Krystal Biotech | 0 | 1 | 7 | 1 | 3.00 |
| Alvotech | 0 | 0 | 2 | 0 | 3.00 |
Krystal Biotech presently has a consensus target price of $218.63, indicating a potential upside of 65.34%. Alvotech has a consensus target price of $18.00, indicating a potential upside of 85.95%. Given Alvotech’s higher possible upside, analysts clearly believe Alvotech is more favorable than Krystal Biotech.
Profitability
This table compares Krystal Biotech and Alvotech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Krystal Biotech | 30.69% | 11.41% | 10.40% |
| Alvotech | -123.47% | N/A | -35.87% |
Risk & Volatility
Krystal Biotech has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, Alvotech has a beta of -0.02, meaning that its share price is 102% less volatile than the S&P 500.
Summary
Krystal Biotech beats Alvotech on 12 of the 14 factors compared between the two stocks.
About Krystal Biotech
Krystal Biotech, Inc., a commercial-stage biotechnology company, discovers, develops, and commercializes genetic medicines for patients with rare diseases in the United States. It commercializes VYJUVEK (beremagene geperpavec-svdt, or B-VEC) for the treatment of dystrophic epidermolysis bullosa (DEB). The company also develops KB105, which is in Phase 1/2 clinical trials for treating patients with deficient autosomal recessive congenital ichthyosis; KB104 for treating netherton syndrome; KB407 that is in Phase 1 clinical trials for treating cystic fibrosis; KB707 that is in Phase 1 clinical trials for the treatment of anti-PD-1 relapsed/refractory; KB408, which is in Phase 1 clinical trials for treating Alpha-1 antitrypsin deficiency; and KB301 that is in Phase 2 clinical trials for treating aesthetic skin conditions, as well as in open label study with ophthalmic B-VEC for treating for ocular complications of deb. Krystal Biotech, Inc. was founded in 2016 and is headquartered in Pittsburgh, Pennsylvania.
About Alvotech
Alvotech, through its subsidiaries, develops and manufactures biosimilar medicines for patients worldwide. It offers biosimilar products in the therapeutic areas of autoimmune, eye, and bone disorders, as well as cancer. The company's lead program is AVT02, a high concentration formulation biosimilar to Humira to treat various inflammatory conditions, including rheumatoid arthritis, psoriatic arthritis, Crohn's disease, ulcerative colitis, plaque psoriasis, and other indications; AVT04, a biosimilar to Stelara to treat various inflammatory conditions comprising psoriatic arthritis, Crohn's disease, ulcerative colitis, plaque psoriasis, and other indications; AVT06, a biosimilar to Eylea to treat various conditions, such as age-related macular degeneration, macular edema, and diabetic retinopathy; and AVT03, a biosimilar to Xgeva and Prolia, which is in the pre-clinical phase to treat prevent bone fracture, spinal cord compression, and the need for radiation or bone surgery in patients with certain types of cancer, as well as prevent bone loss and increase bone mass. In addition, it offers AVT05, a biosimilar to Simponi and Simponi Aria, which is in early phase development to treat various inflammatory conditions, including rheumatoid arthritis, psoriatic arthritis, ulcerative colitis, and other indications; AVT16, a biosimilar to an Entyvio product; AVT23, a biosimilar to Xolair, which is in late-stage development to treat nasal polyps; and AVT33, a biosimilar to an Keytruda product. Alvotech was founded in 2013 and is based in Luxembourg, Luxembourg.
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