Galecto (NASDAQ:GLTO) versus Generex Biotechnology (OTCMKTS:GNBT) Critical Analysis

Galecto (NASDAQ:GLTO) and Generex Biotechnology (OTCMKTS:GNBT) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Risk and Volatility

Galecto has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Generex Biotechnology has a beta of -0.07, meaning that its stock price is 107% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Galecto and Generex Biotechnology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galecto	0	4	1	0	2.20
Generex Biotechnology	0	0	0	0	N/A

Galecto currently has a consensus target price of $4.33, indicating a potential upside of 813.63%. Given Galecto’s higher probable upside, research analysts plainly believe Galecto is more favorable than Generex Biotechnology.

Profitability

This table compares Galecto and Generex Biotechnology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Galecto	N/A	-87.11%	-68.68%
Generex Biotechnology	N/A	N/A	N/A

Earnings & Valuation

This table compares Galecto and Generex Biotechnology’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galecto	N/A	N/A	-$38.35 million	($1.14)	-0.42
Generex Biotechnology	$2.66 million	0.03	-$33.33 million	N/A	N/A

Generex Biotechnology has higher revenue and earnings than Galecto.

Institutional & Insider Ownership

14.2% of Galecto shares are held by institutional investors. 12.1% of Galecto shares are held by company insiders. Comparatively, 35.2% of Generex Biotechnology shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Generex Biotechnology beats Galecto on 5 of the 9 factors compared between the two stocks.

About Galecto

Galecto, Inc., a clinical-stage biotechnology company, develops molecules for the treatment of fibrosis, cancer, inflammation, and other related diseases. The company's lead product candidate is GB2064, which is in Phase IIa for the treatment of myelofibrosis. It also develops GB2064, a selective oral small molecule inhibitor of LOXL2 that is in Phase 2a clinical trial for the treatment of fibrotic diseases, including cancer and myelofibrosis; and GB1211, a selective oral galectin-3 inhibitor that is in Phase IIa for the treatment of cancer, as well as in Phase Ib/IIa for fibrosis. Galecto, Inc. was founded in 2011 and is headquartered in Copenhagen, Denmark.

About Generex Biotechnology

Generex Biotechnology Corporation, through its subsidiaries, engages in the administration of formulations of large molecule drugs to the oral cavity using a hand-held aerosol applicator in Canada and the United States. It offers Generex Oral-lyn, an oral insulin product. The company is also developing AE37, a synthetic peptide vaccine, which has completed Phase IIb clinical trial to stimulate a potent and specific immune response against tumors expressing the HER-2/neu oncogene in patients with breast cancer and prostate cancer. In addition, it develops, manufactures, and distributes rapid point-of-care in-vitro medical diagnostics for infectious diseases, such as human immunodeficiency virus, tuberculosis, malaria, hepatitis B, hepatitis C, syphilis, and others; and test kits and cassettes for testing infectious diseases, as well as Excellagen, a wound conforming gel. Further, the company is developing immunotherapeutic products and vaccines; and extracellular matrix hydrogel solution, a tissue engineered therapy for the treatment of Ulcerative Colitis. Additionally, it manufactures and sells foot and ankle surgical kits that include plates, screws, and tools; and distributes surgical supplies, orthopedic implants, artificial joints, and biologics, medical devices, and regenerative medicine products. It also serves as the general partner of the Management Services Organization. Generex Biotechnology Corporation was founded in 1983 and is headquartered in Miramar, Florida. On April 23, 2022, an involuntary petition for liquidation under Chapter 7 was filed against Generex Biotechnology Corporation in the U.S. Bankruptcy Court for the Southern District of Florida. On June 6, 2022, the involuntary petition was approved by the Court.