Madrigal Pharmaceuticals (NASDAQ:MDGL – Get Free Report) and Minerva Neurosciences (NASDAQ:NERV – Get Free Report) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.
Risk and Volatility
Madrigal Pharmaceuticals has a beta of -1.04, meaning that its stock price is 204% less volatile than the S&P 500. Comparatively, Minerva Neurosciences has a beta of -0.25, meaning that its stock price is 125% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Madrigal Pharmaceuticals and Minerva Neurosciences, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Madrigal Pharmaceuticals | 1 | 1 | 13 | 0 | 2.80 |
| Minerva Neurosciences | 1 | 1 | 0 | 0 | 1.50 |
Valuation and Earnings
This table compares Madrigal Pharmaceuticals and Minerva Neurosciences”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Madrigal Pharmaceuticals | $740.64 million | 18.15 | -$465.89 million | ($13.01) | -45.51 |
| Minerva Neurosciences | N/A | N/A | $1.44 million | ($1.85) | -2.04 |
Minerva Neurosciences has lower revenue, but higher earnings than Madrigal Pharmaceuticals. Madrigal Pharmaceuticals is trading at a lower price-to-earnings ratio than Minerva Neurosciences, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Madrigal Pharmaceuticals and Minerva Neurosciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Madrigal Pharmaceuticals | -54.68% | -38.38% | -27.32% |
| Minerva Neurosciences | N/A | -41.35% | -43.68% |
Institutional and Insider Ownership
98.5% of Madrigal Pharmaceuticals shares are owned by institutional investors. Comparatively, 34.6% of Minerva Neurosciences shares are owned by institutional investors. 21.5% of Madrigal Pharmaceuticals shares are owned by company insiders. Comparatively, 8.6% of Minerva Neurosciences shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Madrigal Pharmaceuticals beats Minerva Neurosciences on 7 of the 13 factors compared between the two stocks.
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.
About Minerva Neurosciences
Minerva Neurosciences, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of product candidates for the treatment of central nervous system diseases. Its lead product candidate is roluperidone (MIN-101) for the treatment of negative symptoms in patients with schizophrenia, currently submitted an New Drug Application (NDA); and MIN-301, a soluble recombinant form of the neuregulin-1b1 protein for the treatment of Parkinson's disease and other neurodegenerative disorders. The company has a license agreement with Mitsubishi Tanabe Pharma Corporation to develop, sell, and import roluperidone globally excluding Asia. Minerva Neurosciences, Inc. was incorporated in 2007 and is based in Burlington, Massachusetts.
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