Head to Head Analysis: ProPhase Labs (NASDAQ:PRPH) versus ALX Oncology (NASDAQ:ALXO)

ProPhase Labs (NASDAQ:PRPH – Get Rating) and ALX Oncology (NASDAQ:ALXO – Get Rating) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Risk & Volatility

ProPhase Labs has a beta of -0.31, indicating that its stock price is 131% less volatile than the S&P 500. Comparatively, ALX Oncology has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500.

Institutional & Insider Ownership

9.8% of ProPhase Labs shares are held by institutional investors. Comparatively, 89.4% of ALX Oncology shares are held by institutional investors. 32.5% of ProPhase Labs shares are held by insiders. Comparatively, 49.9% of ALX Oncology shares are held 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.

Analyst Recommendations

This is a summary of current ratings and target prices for ProPhase Labs and ALX Oncology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ProPhase Labs	1	0	1	0	2.00
ALX Oncology	0	0	5	0	3.00

ProPhase Labs presently has a consensus target price of $14.00, suggesting a potential upside of 58.01%. ALX Oncology has a consensus target price of $26.20, suggesting a potential upside of 303.08%. Given ALX Oncology’s stronger consensus rating and higher possible upside, analysts clearly believe ALX Oncology is more favorable than ProPhase Labs.

Profitability

This table compares ProPhase Labs and ALX Oncology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ProPhase Labs	6.91%	10.05%	6.89%
ALX Oncology	N/A	-44.32%	-39.31%

Valuation & Earnings

This table compares ProPhase Labs and ALX Oncology’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ProPhase Labs	$94.42 million	1.61	$18.46 million	$0.41	21.61
ALX Oncology	$1.18 million	225.13	-$123.48 million	($3.17)	-2.05

ProPhase Labs has higher revenue and earnings than ALX Oncology. ALX Oncology is trading at a lower price-to-earnings ratio than ProPhase Labs, indicating that it is currently the more affordable of the two stocks.

About ProPhase Labs

(Get Rating)

ProPhase Labs, Inc. is a medical science and technology company, which engages in the research, development, manufacture, distribution, marketing, and sale of over-the-counter consumer healthcare products and dietary supplements. It operates through the Diagnostic Services and Consumer Products segment. The Diagnostic Services segment includes COVID-19 and other diagnostic testing services. The Consumer Products segment consists of the manufacturing, retail customers, and personal genomics products and services. The company was founded by Guy J. Quigley and Charles A. Phillips in July 1989 and is headquartered in Garden City, NY.

About ALX Oncology

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ALX Oncology Holdings Inc., a clinical-stage immuno-oncology company, focuses on developing therapies for patients fighting cancer. Its lead product candidate is ALX148, a CD47 blocking therapeutic that is in Phase 1b/2 clinical trial used for the treatment of myelodysplastic syndromes; and for the treatment of acute myeloid leukemia and non-Hodgkin's lymphoma, as well as a range of solid tumor indications, including head and neck squamous cell carcinoma, human epidermal growth factor receptor 2 (HER2) positive gastric/gastroesophageal junction carcinoma, HER2-expressing breast cancer, and other solid tumors. The company's pre-clinical products include ALTA-002, a SIRPa TRAAC that offers ways to engage the innate and adaptive immune response to cancer. ALX Oncology Holdings Inc. has a collaboration agreement with Merck for a Phase 2 trial evaluating ALX148 in combination with pembrolizumab with and without chemotherapy in patients with head and neck cancer; Zymeworks on a Phase 1 trial evaluating ALX148 with the HER2-targeting bispecific antibody zanidatamab in patients with HER2-expressing breast cancer and other solid tumors; and Tallac Therapeutics for the development, manufacturing and commercialization of a novel class of cancer immunotherapeutics. It also has a license agreement with Selexis SA and Crystal Bioscience, Inc. The company was founded in 2015 and is headquartered in South San Francisco, California.