Comparing Viracta Therapeutics (NASDAQ:VIRX) and ALX Oncology (NASDAQ:ALXO)

ALX Oncology (NASDAQ:ALXO) and Viracta Therapeutics (NASDAQ:VIRX) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Valuation and Earnings

This table compares ALX Oncology and Viracta Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ALX Oncology	N/A	N/A	-$160.80 million	($2.98)	-0.41
Viracta Therapeutics	N/A	N/A	-$51.06 million	($1.10)	-0.14

ALX Oncology is trading at a lower price-to-earnings ratio than Viracta Therapeutics, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

98.0% of ALX Oncology shares are owned by institutional investors. Comparatively, 31.4% of Viracta Therapeutics shares are owned by institutional investors. 33.4% of ALX Oncology shares are owned by company insiders. Comparatively, 10.7% of Viracta Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for ALX Oncology and Viracta Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ALX Oncology	0	2	4	0	2.67
Viracta Therapeutics	0	1	3	0	2.75

ALX Oncology currently has a consensus price target of $12.50, indicating a potential upside of 924.59%. Viracta Therapeutics has a consensus price target of $5.00, indicating a potential upside of 3,233.33%. Given Viracta Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Viracta Therapeutics is more favorable than ALX Oncology.

Risk and Volatility

ALX Oncology has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Viracta Therapeutics has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500.

Profitability

This table compares ALX Oncology and Viracta Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ALX Oncology	N/A	-93.02%	-70.67%
Viracta Therapeutics	N/A	-1,899.61%	-114.21%

Summary

ALX Oncology beats Viracta Therapeutics on 6 of the 10 factors compared between the two stocks.

About ALX Oncology

ALX Oncology Holdings Inc., a clinical-stage immuno-oncology company, focuses on developing therapies for cancer patients in the United States. The company's lead product candidate is Evorpacept, a CD47 blocking therapeutic biologic in development as a combination therapy with other anti-cancer agents, including ASPEN-06, under Phase 2 clinical study for treating Gastric/GEJ cancer; ASPEN-07, under Phase 1 clinical study for treating urothelial cancer; and ASPEN-03 and ASPEN-04, both under Phase 2 clinical study for treating head and neck squamous cell carcinoma. It also has collaboration agreement for Evorpacept combination programs comprising Jazz Pharmaceuticals plc for zanidatamab, under Phase 1 trial for the treatment of breast cancer and other solid tumors; Quantum Leap Healthcare collaborative with an ADC, fam-trastuzumab deruxtecan-nxki, under Phase 1 trial for the treatment of patients with breast cancer; MD Anderson Cancer Center with rituximab and lenalidomide for the treatment of patients with indolent and aggressive NHL; Sanofi with isatuximab and dexamethasone, under Phase 1/2 trial for the treatment of patients with relapsed or refractory multiple myeloma; Academic Gastrointestinal Cancer Consortium with pembrolizumab and cetuximab, under Phase 2 trial to treat refractory microsatellite stable metastatic colorectal cancer; and University of Pittsburgh with liposomal doxorubicin and pembrolizumab, under Phase 2 trial recurrent platinum-resistant ovarian cancer. In addition, the company has collaboration agreement with Tallac Therapeutics, Inc. for the development of ALTA-002, a potent immune activator targeted to myeloid cells in the tumor to promote innate and adaptive anti-cancer immune responses. It also has license agreements with Board of Trustees of the Leland Stanford Junior University, Selexis SA, and Crystal Bioscience, Inc. The company was incorporated in 2015 and is headquartered in South San Francisco, California.

About Viracta Therapeutics

Viracta Therapeutics, Inc., a clinical-stage precision oncology company, focuses on the treatment and prevention of virus-associated cancers that impact patients worldwide. Its lead product candidate is Nana-val, an all-oral combination therapy of its proprietary investigational drug, nanatinostat, and the antiviral agent valganciclovir. The company's Nana-val is in various ongoing clinical trials, including NAVAL-1, an open-label Phase 2 basket trial for the treatment of multiple subtypes of relapsed/refractory Epstein-Barr virus-positive (EBV+) lymphoma, as well as an open-label Phase 1b/2 trial for the treatment of EBV+ recurrent or metastatic nasopharyngeal carcinoma and other EBV+ solid tumors. Its product pipeline also includes vecabrutinib, a clinical-stage product candidate; and VRx-510, a preclinical product candidate. The company is headquartered in Cardiff, California.