Financial Analysis: Magenta Therapeutics (NASDAQ:MGTA) & MusclePharm (NASDAQ:MSLP)

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

Insider and Institutional Ownership

63.6% of Magenta Therapeutics shares are owned by institutional investors. Comparatively, 29.1% of MusclePharm shares are owned by institutional investors. 10.9% of Magenta Therapeutics shares are owned by company insiders. Comparatively, 60.7% of MusclePharm shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Magenta Therapeutics and MusclePharm, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Magenta Therapeutics 0 1 4 0 2.80
MusclePharm 0 0 0 0 N/A

Magenta Therapeutics presently has a consensus price target of $18.67, indicating a potential upside of 30.90%. Given Magenta Therapeutics’ higher probable upside, research analysts plainly believe Magenta Therapeutics is more favorable than MusclePharm.

Profitability

This table compares Magenta Therapeutics and MusclePharm’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Magenta Therapeutics N/A -40.02% -37.17%
MusclePharm -7.41% N/A -31.87%

Earnings & Valuation

This table compares Magenta Therapeutics and MusclePharm’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Magenta Therapeutics N/A N/A -$57.51 million ($3.13) -4.56
MusclePharm $102.15 million 0.06 -$10.97 million N/A N/A

MusclePharm has higher revenue and earnings than Magenta Therapeutics.

Summary

MusclePharm beats Magenta Therapeutics on 5 of the 9 factors compared between the two stocks.

About Magenta Therapeutics

Magenta Therapeutics, Inc., a clinical-stage biotechnology company, develops novel medicines to extend the curative power of stem cell transplant, gene therapy, genome editing, and cell therapy to patients. It is developing C100, C200, and C300 targeted antibody-drug conjugates for transplant conditioning; MGTA-145, a novel stem cell mobilization product candidate to control stem cell mobilization; MGTA-456, an allogeneic stem cell therapy to control stem cell growth; E478, a small molecule aryl hydrocarbon receptor antagonist for the expansion of gene-modified stem cells; and G100, an antibody-drug conjugate program to prevent acute graft and host diseases. The company was formerly known as HSCTCo Therapeutics, Inc. and changed its name to Magenta Therapeutics, Inc. in February 2016. Magenta Therapeutics, Inc. was founded in 2015 and is headquartered in Cambridge, Massachusetts.

About MusclePharm

MusclePharm Corporation develops, manufactures, markets, and distributes nutritional supplements in the United States and internationally. It offers a range of powders, capsules, tablets, and gels. The company's MusclePharm brand product portfolio include Combat protein powder and Combat crunch protein bars; essentials supplements, such as a BCAA, creatine, glutamine, carnitine, CLA, fish oil, multi-vitamin, and other products; and non-genetically modified organism sports performance products with organic ingredients, plant-based proteins, and natural caffeine sources for use in the various stages of the workout. It also provides FitMiss sports nutrition products, which are designed and formulated primarily for women lifestyle to cover various needs, including weight management, lean muscle mass, body composition, and general health and wellness. MusclePharm Corporation sells its products to various fitness enthusiasts, such as professional, combat sport, weight training, bodybuilding, running, and various team and individual sports, as well as individuals who lead an active lifestyle. The company was founded in 2006 and is headquartered in Burbank, California.

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