OncoSec Medical (NASDAQ:ONCS) and ALX Oncology (NASDAQ:ALXO) Critical Contrast

OncoSec Medical (NASDAQ:ONCS – 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 businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.

Volatility & Risk

OncoSec Medical has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500. Comparatively, ALX Oncology has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500.

Institutional & Insider Ownership

89.4% of ALX Oncology shares are held by institutional investors. 1.3% of OncoSec Medical shares are held by company insiders. Comparatively, 49.9% of ALX Oncology shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares OncoSec Medical and ALX Oncology’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OncoSec Medical	N/A	N/A	-$34.18 million	($15.29)	-0.03
ALX Oncology	$1.18 million	235.87	-$123.48 million	($3.17)	-2.15

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for OncoSec Medical and ALX Oncology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OncoSec Medical	0	1	0	0	2.00
ALX Oncology	0	0	5	0	3.00

ALX Oncology has a consensus price target of $26.20, suggesting a potential upside of 284.73%. Given ALX Oncology’s stronger consensus rating and higher possible upside, analysts clearly believe ALX Oncology is more favorable than OncoSec Medical.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OncoSec Medical	N/A	-868.29%	-160.61%
ALX Oncology	N/A	-44.32%	-39.31%

Summary

ALX Oncology beats OncoSec Medical on 9 of the 12 factors compared between the two stocks.

About OncoSec Medical

(Get Rating)

OncoSec Medical, Inc. is a biotechnology company focused on designing, developing and commercializing therapies and proprietary medical approaches to stimulate and to guide an anti-tumor immune response for the treatment of cancer. Its lead product candidate, ImmunoPulse IL-12, uses an electroporation device, with the aim of reversing the immunosuppressive microenvironment in the treated tumor. The company was founded by Avtar S. Dhillon and Punit S. Dhillon on February 8, 2008 and is headquartered in Ewing, NJ.

About ALX Oncology

(Get Rating)

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.