GeneLink (OTCMKTS:GNLKQ) versus Arcellx (NASDAQ:ACLX) Critical Review

GeneLink (OTCMKTS:GNLKQ) and Arcellx (NASDAQ:ACLX) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Volatility & Risk

GeneLink has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500. Comparatively, Arcellx has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GeneLink	N/A	N/A	N/A
Arcellx	-37.23%	-12.42%	-7.30%

Insider and Institutional Ownership

96.0% of Arcellx shares are held by institutional investors. 14.2% of GeneLink shares are held by company insiders. Comparatively, 6.2% of Arcellx 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for GeneLink and Arcellx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GeneLink	0	0	0	0	N/A
Arcellx	0	0	13	1	3.07

Arcellx has a consensus price target of $88.50, suggesting a potential downside of 8.63%.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GeneLink	N/A	N/A	N/A	N/A	N/A
Arcellx	$144.75 million	35.80	-$70.69 million	($1.03)	-94.04

GeneLink has higher earnings, but lower revenue than Arcellx.

Summary

Arcellx beats GeneLink on 5 of the 9 factors compared between the two stocks.

About GeneLink

GeneLink, Inc. offers 12-gene DNA assessment services. The company also provides health custom supplements. In addition, it formulates a line of skin care products. The company was founded in 1994 and is based in Orlando, Florida.

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.