Critical Survey: MacroGenics (NASDAQ:MGNX) versus Smith & Nephew SNATS (NYSE:SNN)

Smith & Nephew SNATS (NYSE:SNN) and MacroGenics (NASDAQ:MGNX) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Earnings and Valuation

This table compares Smith & Nephew SNATS and MacroGenics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith & Nephew SNATS	$5.94 billion	2.39	$412.00 million	N/A	N/A
MacroGenics	$163.87 million	0.60	-$66.97 million	($0.57)	-2.71

Smith & Nephew SNATS has higher revenue and earnings than MacroGenics.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Smith & Nephew SNATS and MacroGenics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith & Nephew SNATS	0	6	1	0	2.14
MacroGenics	1	3	1	1	2.33

Smith & Nephew SNATS presently has a consensus price target of $35.75, indicating a potential upside of 7.50%. MacroGenics has a consensus price target of $3.60, indicating a potential upside of 132.86%. Given MacroGenics’ stronger consensus rating and higher probable upside, analysts plainly believe MacroGenics is more favorable than Smith & Nephew SNATS.

Insider & Institutional Ownership

25.6% of Smith & Nephew SNATS shares are held by institutional investors. Comparatively, 96.9% of MacroGenics shares are held by institutional investors. 1.0% of Smith & Nephew SNATS shares are held by insiders. Comparatively, 13.0% of MacroGenics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Smith & Nephew SNATS and MacroGenics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smith & Nephew SNATS	N/A	N/A	N/A
MacroGenics	-21.99%	-40.24%	-14.62%

Volatility & Risk

Smith & Nephew SNATS has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, MacroGenics has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.

About Smith & Nephew SNATS

Smith & Nephew plc engages in the development, manufacture, marketing, and sale of medical devices. It operates through the following segments: Orthopaedics, Sports Medicine and ENT, and Advanced Wound Management. The Orthopaedics and Sports Medicine and ENT segment consists of the following businesses: knee implants, hip implants, other reconstruction, trauma, sports medicine joint repair, arthroscopic enabling technologies, and ENT. The Advanced Wound Management segment includes advanced wound care, advanced wound bioactives, and advanced wound devices businesses. The company was founded in 1856 and is headquartered in Watford, the United Kingdom.

About MacroGenics

MacroGenics, Inc., a biopharmaceutical company, develops, manufactures, and commercializes antibody-based therapeutics to treat cancer in the United States. Its approved product is MARGENZA (margetuximab-cmkb), a human epidermal growth factor receptor 2 (HER2) receptor antagonist indicated, in combination with chemotherapy, for the treatment of adult patients with metastatic HER2-positive breast cancer who have received two or more prior anti-HER2 regimens. The company's pipeline of immuno-oncology product candidates includes MGC018, an antibody drug conjugate (ADC), which targets solid tumors expressing B7-H3; Enoblituzumab, a monoclonal antibody that targets B7-H3; and MGD024, an investigational bispecific CD123 × CD3 DART molecule to minimize cytokine-release syndrome for patients with hematologic malignancies. In addition, it develops Lorigerlimab, a monoclonal antibody that targets the immune checkpoints PD-1 and cytotoxic T-lymphocyte-associated protein 4; Tebotelimab, an investigational tetravalent DART molecule for PD-1 and lymphocyte-activation gene 3; Retifanlimab, a humanized monoclonal antibody targeting programmed death receptor-1; and IMGC936, an ADC that targets ADAM9, a cell surface protein over-expressed in various solid tumor types. Further, the company develops MGD014 and MGD020, a DART molecule to target the envelope protein of human immunodeficiency virus infected cells and CD3 on T cells; Teplizumab for the treatment of type 1 diabetes; and PRV-3279, a CD32B × CD79B DART molecule for the treatment of autoimmune indications. It has collaborations with Incyte Corporation; Zai Lab Limited; I-Mab Biopharma; and Janssen Biotech, Inc. The company was incorporated in 2000 and is headquartered in Rockville, Maryland.