Analyzing China SXT Pharmaceuticals (NASDAQ:SXTC) and Avalo Therapeutics (NASDAQ:AVTX)

Avalo Therapeutics (NASDAQ:AVTX) and China SXT Pharmaceuticals (NASDAQ:SXTC) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

Profitability

This table compares Avalo Therapeutics and China SXT Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avalo Therapeutics	N/A	-442.16%	122.99%
China SXT Pharmaceuticals	N/A	N/A	N/A

Insider and Institutional Ownership

87.1% of Avalo Therapeutics shares are owned by institutional investors. Comparatively, 5.0% of China SXT Pharmaceuticals shares are owned by institutional investors. 0.3% of Avalo Therapeutics shares are owned by insiders. Comparatively, 4.0% of China SXT Pharmaceuticals shares are owned 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.

Volatility and Risk

Avalo Therapeutics has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, China SXT Pharmaceuticals has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Avalo Therapeutics and China SXT Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avalo Therapeutics	0	1	2	0	2.67
China SXT Pharmaceuticals	0	0	0	0	0.00

Avalo Therapeutics presently has a consensus price target of $40.00, suggesting a potential upside of 398.75%. Given Avalo Therapeutics’ stronger consensus rating and higher possible upside, equities analysts clearly believe Avalo Therapeutics is more favorable than China SXT Pharmaceuticals.

Valuation and Earnings

This table compares Avalo Therapeutics and China SXT Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avalo Therapeutics	$1.92 million	43.40	-$31.54 million	N/A	N/A
China SXT Pharmaceuticals	$1.93 million	0.83	-$3.10 million	N/A	N/A

China SXT Pharmaceuticals has higher revenue and earnings than Avalo Therapeutics.

Summary

Avalo Therapeutics beats China SXT Pharmaceuticals on 6 of the 11 factors compared between the two stocks.

About Avalo Therapeutics

Avalo Therapeutics, Inc., a clinical stage biotechnology company, focuses on the development of therapies for the treatment of immune dysregulation in the Unites States. The company's drug candidates include AVTX-009, an Anti-IL-1ß monoclonal antibody which is under Phase I targeting inflammatory diseases; and AVTX-008, a fully human B and T lymphocyte attenuator agonist fusion protein for the treatment of immune dysregulation disorders. It also develops Quisovalimab (AVTX-002), an Anti-LIGHT mAb which is in phase II for immune-inflammatory diseases. The company was formerly known as Cerecor Inc. and changed its name to Avalo Therapeutics, Inc. in August 2021. Avalo Therapeutics, Inc. was incorporated in 2011 and is headquartered in Rockville, Maryland.

About China SXT Pharmaceuticals

China SXT Pharmaceuticals, Inc., a pharmaceutical company, engages in the research, development, manufacture, marketing, and sale of traditional Chinese medicine pieces (TCMP) in China. The company offers advanced, fine, and regular TCMP products, and raw medicinal material, such as ChenXiang, SanQiFen, HongQi, SuMu, JiangXiang, CuYanHuSuo, XiaTianWu, LuXueJing, XueJie, ChaoSuanZaoRen, HongQuMi, ChuanBeiMu, HuangShuKuiHua, WuWeiZi, DingXiang, RenShen, QingGuo, JueMingZi, and ShaRen. It provides its products under the Suxuantang, Hui Chun Tang, and Tong Ren Tang brands. The company had an end-customer base of pharmaceutical companies, chain pharmacies, and hospitals in 10 provinces and municipalities in China. China SXT Pharmaceuticals, Inc. was founded in 2005 and is headquartered in Taizhou, China.