Legend Biotech (NASDAQ:LEGN – Get Free Report) and Alumis (NASDAQ:ALMS – Get Free Report) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.
Risk and Volatility
Legend Biotech has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500. Comparatively, Alumis has a beta of -0.81, suggesting that its share price is 181% less volatile than the S&P 500.
Insider and Institutional Ownership
70.9% of Legend Biotech shares are owned by institutional investors. 0.0% of Legend Biotech shares are owned by company insiders. Comparatively, 33.7% of Alumis shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Legend Biotech | 1 | 6 | 8 | 0 | 2.47 |
| Alumis | 1 | 1 | 9 | 1 | 2.83 |
Legend Biotech currently has a consensus target price of $53.43, indicating a potential upside of 148.27%. Alumis has a consensus target price of $33.27, indicating a potential upside of 199.75%. Given Alumis’ stronger consensus rating and higher possible upside, analysts clearly believe Alumis is more favorable than Legend Biotech.
Profitability
This table compares Legend Biotech and Alumis’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Legend Biotech | -7.21% | -8.71% | -5.40% |
| Alumis | -5,933.46% | -93.15% | -74.50% |
Earnings & Valuation
This table compares Legend Biotech and Alumis”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Legend Biotech | $1.03 billion | 4.05 | -$296.80 million | ($0.25) | -86.08 |
| Alumis | $7.40 million | 194.20 | -$243.32 million | ($3.86) | -2.88 |
Alumis has lower revenue, but higher earnings than Legend Biotech. Legend Biotech is trading at a lower price-to-earnings ratio than Alumis, indicating that it is currently the more affordable of the two stocks.
Summary
Alumis beats Legend Biotech on 8 of the 15 factors compared between the two stocks.
About Legend Biotech
Legend Biotech Corporation, a clinical-stage biopharmaceutical company, through its subsidiaries, engages in the discovery, development, manufacturing, and commercialization of novel cell therapies for oncology and other indications in the United States, China, and internationally. Its lead product candidate, LCAR- B38M, is a chimeric antigen receptor for the treatment of multiple myeloma (MM). The company also has a portfolio of earlier-stage autologous CAR-T product candidates targeting various cancers, including Non-Hodgkins Lymphoma, acute lymphoblastic leukemia, gastric cancer, esophageal cancer, pancreatic cancer, colorectal cancer, hepatocellular carcinoma, small cell lung cancer, and non-small cell lung cancer. It has collaboration and license agreement with Janssen Biotech, Inc. for the development and commercialization of ciltacabtagene autoleucel. The company was founded in 2014 and is based in Somerset, New Jersey. Legend Biotech Corporation is a subsidiary of Genscript Biotech Corporation.
About Alumis
Our mission is to significantly improve the lives of patients by replacing broad immunosuppression with targeted therapies. Our name, Alumis, captures our mission to enlighten immunology, and is inspired by the words “allumer”-French for illuminate-and “immunis”-Latin for the immune system. We are a clinical stage biopharmaceutical company with an initial focus on developing our two Tyrosine Kinase 2 (TYK2) inhibitors: ESK-001, a second-generation inhibitor that we are developing to maximize target inhibition and optimize tolerability, and A-005, a central nervous system (CNS) penetrant molecule. ESK-001 has demonstrated significant therapeutic effect in our Phase 2 program in patients with PsO, which we define as moderate-to-severe plaque psoriasis (PsO), and is currently being evaluated in an additional Phase 2 clinical trial in patients with systemic lupus erythematosus (SLE), for which we expect to report results in 2026. With the favorable results in our Phase 2 clinical trial in PsO, we intend to initiate multiple Phase 3 clinical trials of ESK-001 in the second half of 2024 in this indication. TYK2 genetic mutations are associated with a strong protective effect in multiple sclerosis, motivating us to develop our second product candidate, A-005, as a CNS-penetrant, allosteric TYK2 inhibitor for neuroinflammatory and neurodegenerative diseases. In April 2024, we initiated our Phase 1 program of A-005 in healthy volunteers and expect to report initial results by the end of 2024. We utilize our proprietary precision data analytics platform, biological insights and team of experienced research and development experts to deepen our understanding of disease pathologies, accelerate research and development and increase the probability of clinical success. Our collective insights informed our selection of TYK2 as the target for our two lead programs. Beyond TYK2, our proprietary precision data analytics platform and drug discovery expertise have led to the identification of additional preclinical programs that exemplify our precision approach. We recognize that patients living with immune-mediated diseases need alternatives to currently available therapies. Despite recent advances and innovations in the treatment of immune-mediated diseases, many patients continue to suffer, cycling through currently approved therapies while looking for a solution that alleviates the debilitating impact of their disease without life-limiting side effects. Addressing the needs of these patients is why we exist. We are pioneering a precision approach that leverages insights derived from powerful data analytics to select the right target, right molecule, right indication, right patient, right endpoint and right combination to dramatically improve patient outcomes. We believe that combining our insights with an integrated approach to drug development will produce the next generation of treatments to address immune dysfunction. We were founded in January 2021 as a Delaware corporation under the name FL2021-001, Inc. We changed our name to Esker Therapeutics, Inc. in March 2021, and subsequently to Alumis Inc. in January 2022. Our principal executive offices are located at 280 East Grand Avenue, South San Francisco, California.
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