Halozyme Therapeutics (NASDAQ:HALO) vs. Nuvalent (NASDAQ:NUVL) Financial Survey

Halozyme Therapeutics (NASDAQ:HALO) and Nuvalent (NASDAQ:NUVL) are both mid-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Insider and Institutional Ownership

97.8% of Halozyme Therapeutics shares are held by institutional investors. Comparatively, 97.3% of Nuvalent shares are held by institutional investors. 2.4% of Halozyme Therapeutics shares are held by insiders. Comparatively, 10.2% of Nuvalent shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Halozyme Therapeutics and Nuvalent, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Halozyme Therapeutics	0	8	4	0	2.33
Nuvalent	1	0	13	0	2.86

Halozyme Therapeutics currently has a consensus price target of $73.11, suggesting a potential upside of 12.15%. Nuvalent has a consensus price target of $123.08, suggesting a potential upside of 23.92%. Given Nuvalent’s stronger consensus rating and higher probable upside, analysts plainly believe Nuvalent is more favorable than Halozyme Therapeutics.

Valuation and Earnings

This table compares Halozyme Therapeutics and Nuvalent”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Halozyme Therapeutics	$1.18 billion	6.47	$444.09 million	$4.37	14.92
Nuvalent	N/A	N/A	-$260.76 million	($5.32)	-18.67

Halozyme Therapeutics has higher revenue and earnings than Nuvalent. Nuvalent is trading at a lower price-to-earnings ratio than Halozyme Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Halozyme Therapeutics and Nuvalent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Halozyme Therapeutics	47.28%	150.85%	29.19%
Nuvalent	N/A	-38.84%	-35.18%

Volatility & Risk

Halozyme Therapeutics has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Nuvalent has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.

Summary

Halozyme Therapeutics beats Nuvalent on 8 of the 13 factors compared between the two stocks.

About Halozyme Therapeutics

Halozyme Therapeutics, Inc., a biopharma technology platform company, researches, develops, and commercializes proprietary enzymes and devices in the United States, Switzerland, Belgium, Japan, and internationally. The company's products are based on the patented recombinant human hyaluronidase enzyme (rHuPH20) that enables delivery of injectable biologics, such as monoclonal antibodies and other therapeutic molecules, as well as small molecules and fluids. It offers Hylenex recombinant, a formulation of rHuPH20 to facilitate subcutaneous (SC) fluid administration for achieving hydration to enhance the dispersion and absorption of other injected drugs in SC urography and to enhance resorption of radiopaque agents; rilpivirine, cabotegravir, and N6LS BNAB for the treatment of HIV; ocrelizumab for multiple sclerosis; XYOSTED, an injection for SC administration of testosterone replacement therapy; and ATRS-1902, a proprietary drug device combination product. The company also provides Herceptin (trastuzumab), Herceptin Hylecta, and Phesgo to treat breast cancer; Mabthera SC for the treatment of chronic lymphocytic leukemia; HYQVIA to treat primary immunodeficiency disorders; and DARZALEX for patients with amyloidosis, smoldering myeloma, and multiple myeloma. In addition, it offers Epinephrine Injection to treat allergic reactions; nivolumab+relatlimab and ANTI-TIM3 for the treatment of solid tumors; ARGX-117 for multifocal motor neuropathy; atezolizumab; nivolumab; afgartigimod; teriparatide injections; and OTREXUP, a SC methotrexate injection for adults with severe active rheumatoid arthritis and severe recalcitrant psoriasis, as well as children with active polyarticular juvenile idiopathic arthritis. Further, the company provides ATRS-1902 for adrenal crisis rescue; ARGX-113; and ARGX-117 to treat severe autoimmune diseases in multifocal motor neuropathy. Halozyme Therapeutics, Inc. was founded in 1998 and is headquartered in San Diego, California.

About Nuvalent

Nuvalent, Inc., a clinical stage biopharmaceutical company, engages in the development of therapies for patients with cancer. Its lead product candidates are NVL-520, a novel ROS1-selective inhibitor to address the clinical challenges of emergent treatment resistance, central nervous system (CNS)-related adverse events, and brain metastases that may limit the use of ROS1 tyrosine kinase inhibitors (TKIs) for patients with ROS proto-oncogene 1 (ROS1)-positive non-small cell lung cancer (NSCLC) which is under the phase 2 portion of the ARROS-1 Phase 1/2 clinical trial; NVL-655, a brain-penetrant ALK-selective inhibitor, to address the clinical challenges of emergent treatment resistance, CNS-related adverse events, and brain metastases that might limit the use of first-, second-, and third-generation ALK inhibitors that is under the phase 2 portion of the ALKOVE-1 Phase 1/2 clinical trial; and NVL-330, a brain-penetrant human epidermal growth factor receptor 2 (HER2)-selective inhibitor designed to treat tumors driven by HER2ex20, brain metastases, and avoiding treatment-limiting adverse events including due to off-target inhibition of wild-type EGFR, which is expected to initiate phase 1 trial. The company was incorporated in 2017 and is headquartered in Cambridge, Massachusetts.