Comparing SpringWorks Therapeutics (NASDAQ:SWTX) and Iovance Biotherapeutics (NASDAQ:IOVA)

Iovance Biotherapeutics (NASDAQ:IOVA) and SpringWorks Therapeutics (NASDAQ:SWTX) are both mid-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Volatility and Risk

Iovance Biotherapeutics has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, SpringWorks Therapeutics has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Earnings and Valuation

This table compares Iovance Biotherapeutics and SpringWorks Therapeutics’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iovance Biotherapeutics	$32.77 million	96.40	-$444.04 million	($1.80)	-6.27
SpringWorks Therapeutics	$5.45 million	521.66	-$325.10 million	($5.14)	-7.45

SpringWorks Therapeutics has lower revenue, but higher earnings than Iovance Biotherapeutics. SpringWorks Therapeutics is trading at a lower price-to-earnings ratio than Iovance Biotherapeutics, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Iovance Biotherapeutics and SpringWorks Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iovance Biotherapeutics	0	1	9	0	2.90
SpringWorks Therapeutics	0	0	6	0	3.00

Iovance Biotherapeutics presently has a consensus target price of $24.00, suggesting a potential upside of 112.58%. SpringWorks Therapeutics has a consensus target price of $68.83, suggesting a potential upside of 79.82%. Given Iovance Biotherapeutics’ higher possible upside, equities analysts clearly believe Iovance Biotherapeutics is more favorable than SpringWorks Therapeutics.

Insider & Institutional Ownership

77.0% of Iovance Biotherapeutics shares are held by institutional investors. 10.4% of Iovance Biotherapeutics shares are held by insiders. Comparatively, 7.6% of SpringWorks Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Iovance Biotherapeutics and SpringWorks Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iovance Biotherapeutics	-23,615.70%	-71.45%	-55.17%
SpringWorks Therapeutics	N/A	-56.13%	-48.80%

About Iovance Biotherapeutics

Iovance Biotherapeutics, Inc., a commercial-stage biotechnology company, develops and commercializes cell therapies using autologous tumor infiltrating lymphocyte for the treatment of metastatic melanoma and other solid tumor cancers in the United States. The company offers Amtagvi, a tumor-derived autologous T cell immunotherapy used to treat adult patients with unresectable or metastatic melanoma; and Proleukin, an interleukin-2 product for the treatment of patients with metastatic renal cell carcinoma. It also develops lifileucel in combination with pembrolizumab to treat frontline advanced melanoma patients; LN-145 for the treatment of non-small cell lung cancer (NSCLC) and solid tumor cancers; IOV-4001, which is in Phase 1/2 IOV-GM1-201 clinical trial, for the treatment of NSCLC; and lifileucel for gynecological cancers. The company has collaborations and licensing agreements with WuXi Advanced Therapies, Inc.; National Institutes of Health; the National Cancer Institute; H. Lee Moffitt Cancer Center; The University of Texas M.D. Anderson Cancer Center; Cellectis S.A.; Novartis Pharma AG; and Boehringer Ingelheim Biopharmaceuticals GmbH. The company was formerly known as Lion Biotechnologies, Inc. and changed its name to Iovance Biotherapeutics, Inc. in June 2017. Iovance Biotherapeutics, Inc. was incorporated in 2007 and is headquartered in San Carlos, California.

About SpringWorks Therapeutics

SpringWorks Therapeutics, Inc., a commercial-stage biopharmaceutical company, engages in the development and commercialization of medicines for underserved patient populations suffering from rare diseases and cancer. Its lead product candidate is OGSIVEO (nirogacestat), an oral small molecule gamma secretase inhibitor that is in Phase III DeFi trial for the treatment of desmoid tumors; and Nirogacestat, is also in Phase 2 clinical development as a monotherapy for the treatment of ovarian granulosa cell tumors (GCT), a subtype of ovarian cancer. The company is also involved in the development of mirdametinib, an oral small molecule MEK inhibitor that is in Phase 2b clinical trials for the treatment of neurofibromatosis type 1-associated plexiform neurofibromas (NF1-PN); mirdametinib + lifirafenib, a combination therapy that is in Phase 1b clinical trial in patients with advanced or refractory solid tumors; and mirdametinib in monotherapy and combination approaches to treat other genetically defined solid tumors, including Phase 1/2 clinical trial for the treatment of pediatric and young adult patients with low-grade gliomas. In addition, it develops Brimarafenib (BGB-3245), an oral selective small molecule inhibitor of monomeric and dimeric forms of activating BRAF mutations. The company has collaborations with BeiGene, Ltd. and GlaxoSmithKline LLC; and license agreements with Pfizer Inc. for nirogacestat and mirdametinib. It also has a license agreement with Katholieke Universiteit Leuven and the Flanders Institute for Biotechnology for a portfolio of novel small molecule inhibitors of the TEA Domain; and Dana-Farber Cancer Institute for a portfolio of novel small molecule inhibitors of Epidermal Growth Factor Receptor. The company was founded in 2017 and is headquartered in Stamford, Connecticut.