Head-To-Head Survey: Madrigal Pharmaceuticals (NASDAQ:MDGL) & Sonnet BioTherapeutics (NASDAQ:SONN)

Sonnet BioTherapeutics (NASDAQ:SONN) and Madrigal Pharmaceuticals (NASDAQ:MDGL) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for Sonnet BioTherapeutics and Madrigal Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonnet BioTherapeutics	0	0	1	0	3.00
Madrigal Pharmaceuticals	0	1	8	0	2.89

Sonnet BioTherapeutics currently has a consensus price target of $20.00, suggesting a potential upside of 1,639.13%. Madrigal Pharmaceuticals has a consensus price target of $420.63, suggesting a potential upside of 42.31%. Given Sonnet BioTherapeutics’ stronger consensus rating and higher probable upside, research analysts clearly believe Sonnet BioTherapeutics is more favorable than Madrigal Pharmaceuticals.

Risk and Volatility

Sonnet BioTherapeutics has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Madrigal Pharmaceuticals has a beta of -1.08, suggesting that its stock price is 208% less volatile than the S&P 500.

Earnings and Valuation

This table compares Sonnet BioTherapeutics and Madrigal Pharmaceuticals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonnet BioTherapeutics	$1.00 million	3.64	-$7.44 million	N/A	N/A
Madrigal Pharmaceuticals	$317.38 million	20.68	-$373.63 million	($18.05)	-16.38

Sonnet BioTherapeutics has higher earnings, but lower revenue than Madrigal Pharmaceuticals.

Profitability

This table compares Sonnet BioTherapeutics and Madrigal Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sonnet BioTherapeutics	N/A	-408.93%	-174.13%
Madrigal Pharmaceuticals	N/A	-71.78%	-53.25%

Insider and Institutional Ownership

9.4% of Sonnet BioTherapeutics shares are owned by institutional investors. Comparatively, 98.5% of Madrigal Pharmaceuticals shares are owned by institutional investors. 2.0% of Sonnet BioTherapeutics shares are owned by insiders. Comparatively, 21.5% of Madrigal Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Madrigal Pharmaceuticals beats Sonnet BioTherapeutics on 7 of the 11 factors compared between the two stocks.

About Sonnet BioTherapeutics

Sonnet BioTherapeutics Holdings, Inc., a biotechnology company, owns a platform for biologic medicines of single or bifunctional action. The company develops fully human albumin binding technology, which utilizes human single chain antibodies fragment that binds to and hitch-hikes on human serum albumin for transport to target tissues. Its lead product candidate is SON-1010, a fully human single-chain version of interleukin 12 that is in Phase 1b/2a clinical trial for the treatment of solid tumor indications, including ovarian cancer, non-small cell lung cancer, and head and neck cancer. The company is also developing SON-080, a fully human version of interleukin 6, which is in Phase 1b/I2a clinical trail to treat chemotherapy-induced peripheral neuropathy and diabetic peripheral neuropathy; and SON-1210, a bispecific compound for solid tumor indications, including colorectal cancer. It has a license agreement with New Life Therapeutics Pte, LTD. to develop and commercialize pharmaceutical preparations containing a specific recombinant human interleukin-6; and strategic development collaboration with Sarcoma Oncology Center to advance SON-1210. The company is headquartered in Princeton, New Jersey.

About Madrigal Pharmaceuticals

Madrigal Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development of therapeutics for the treatment of non-alcoholic steatohepatitis (NASH) in the United States. Its lead product candidate is resmetirom, a liver-directed thyroid hormone receptor beta agonist, which is in Phase 3 clinical trials for treating NASH. The company is headquartered in West Conshohocken, Pennsylvania.