Head to Head Comparison: Avalo Therapeutics (NASDAQ:AVTX) vs. China SXT Pharmaceuticals (NASDAQ:SXTC)

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

Profitability

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

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

Insider and Institutional Ownership

5.0% of China SXT Pharmaceuticals shares are held by institutional investors. Comparatively, 87.1% of Avalo Therapeutics shares are held by institutional investors. 4.0% of China SXT Pharmaceuticals shares are held by insiders. Comparatively, 0.3% of Avalo Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China SXT Pharmaceuticals	$1.93 million	0.86	-$3.10 million	N/A	N/A
Avalo Therapeutics	$1.92 million	42.75	-$31.54 million	N/A	N/A

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

Analyst Ratings

This is a breakdown of current recommendations for China SXT Pharmaceuticals and Avalo Therapeutics, as provided by MarketBeat.com.

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

Avalo Therapeutics has a consensus target price of $40.00, indicating a potential upside of 406.33%. Given Avalo Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Avalo Therapeutics is more favorable than China SXT Pharmaceuticals.

Volatility & Risk

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

Summary

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

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.

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.