Head-To-Head Review: Cabaletta Bio (NASDAQ:CABA) & Arcellx (NASDAQ:ACLX)

Cabaletta Bio (NASDAQ:CABA) and Arcellx (NASDAQ:ACLX) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Cabaletta Bio and Arcellx, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cabaletta Bio	0	1	6	1	3.00
Arcellx	0	0	13	2	3.13

Cabaletta Bio currently has a consensus price target of $22.71, indicating a potential upside of 1,127.80%. Arcellx has a consensus price target of $108.46, indicating a potential upside of 57.46%. Given Cabaletta Bio’s higher possible upside, equities analysts plainly believe Cabaletta Bio is more favorable than Arcellx.

Profitability

This table compares Cabaletta Bio and Arcellx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cabaletta Bio	N/A	-50.10%	-45.49%
Arcellx	-25.94%	-8.28%	-5.21%

Risk & Volatility

Cabaletta Bio has a beta of 2.58, suggesting that its share price is 158% more volatile than the S&P 500. Comparatively, Arcellx has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500.

Institutional & Insider Ownership

96.0% of Arcellx shares are owned by institutional investors. 9.9% of Cabaletta Bio shares are owned by insiders. Comparatively, 6.2% of Arcellx shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Cabaletta Bio and Arcellx”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cabaletta Bio	N/A	N/A	-$67.68 million	($2.15)	-0.86
Arcellx	$107.94 million	34.51	-$70.69 million	($2.00)	-34.44

Cabaletta Bio has higher earnings, but lower revenue than Arcellx. Arcellx is trading at a lower price-to-earnings ratio than Cabaletta Bio, indicating that it is currently the more affordable of the two stocks.

Summary

Arcellx beats Cabaletta Bio on 8 of the 14 factors compared between the two stocks.

About Cabaletta Bio

Cabaletta Bio, Inc., a clinical-stage biotechnology company, focuses on the discovery and development of engineered T cell therapies for patients with B cell-mediated autoimmune diseases. The company's lead product candidate is CABA-201, a fully human anti-CD19 binder for the treatment of Phase 1/2 clinical trials in dermatomyositis, anti-synthetase syndrome, immune-mediated necrotizing myopathy, lupus nephritis, non-renal systemic lupus erythematosus, systemic sclerosis, and generalized myasthenia gravis. It also develops DSG3-CAART, which is in Phase I/II clinical trial for the treatment of mucosal pemphigus vulgaris; and MuSK-CAART, an investigational cell therapy that is in Phase I/II clinical trial for treating patients with anti- muscle-specific kinase antibody positive myasthenia gravis. It has a collaboration with the University of Pennsylvania and the Children's Hospital of Philadelphia; Nanjing IASO Biotherapeutics Co., Ltd; Oxford Biomedica; and WuXi Advanced Therapies, Inc. The company was formerly known as Tycho Therapeutics, Inc. and changed its name to Cabaletta Bio, Inc. in August 2018. Cabaletta Bio, Inc. was incorporated in 2017 and is headquartered in Philadelphia, Pennsylvania.

About Arcellx

Arcellx, Inc., together with its subsidiary, engages in the development of various immunotherapies for patients with cancer and other incurable diseases in the United States. The company’s lead ddCAR product candidate is anitocabtagene autoleucel, which is in phase 2 clinical trial for the treatment of patients with relapsed or refractory multiple myeloma (rrMM). It also develops ACLX-001, a product candidate in Phase 1 clinical trials targeting BCMA to treat rrMM; and ACLX-002, which is in Phase 1 clinical trials that targets CD123 for treating relapsed or refractory acute myeloid leukemia (AML) and myelodysplastic syndrome (MDS). In addition, the company’s preclinical product includes ACLX-003 for the treatment of AML and MDS. Further, it focuses on the development of product candidates for solid tumor programs. It has a strategic alliance with Kite Pharma, Inc. to co-develop and co-commercialize anitocabtagene autoleucel. The company was formerly known as Encarta Therapeutics, Inc. and changed its name to Arcellx, Inc. in January 2016. Arcellx, Inc. was incorporated in 2014 and is headquartered in Redwood City, California.