Merck KGaA (OTCMKTS:MKGAF) & MorphoSys (NASDAQ:MOR) Head-To-Head Review

Insider & Institutional Ownership

0.1% of Merck KGaA shares are owned by institutional investors. Comparatively, 18.4% of MorphoSys shares are owned by institutional investors. 0.1% of MorphoSys shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Merck KGaA and MorphoSys”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Merck KGaA	$22.72 billion	0.73	$3.06 billion	$6.81	18.85
MorphoSys	$238.28 million	11.99	-$205.35 million	($3.48)	-5.45

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

Risk and Volatility

Merck KGaA has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, MorphoSys has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.

Profitability

This table compares Merck KGaA and MorphoSys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Merck KGaA	12.60%	10.17%	5.74%
MorphoSys	-226.79%	-694.31%	-22.55%

Summary

Merck KGaA beats MorphoSys on 7 of the 11 factors compared between the two stocks.

About Merck KGaA

Merck KGaA operates as a science and technology company in Germany. It operates through Life Science, Healthcare, and Electronics segments. The company's Life Science segment offers tools, chemicals, and equipment for academic labs, biotech, and pharmaceutical manufacturers, as well as industrial sector. This segment provides drug manufacturers with process development expertise and technologies, such as continuous bioprocessing; testing kits and services; reagents and services; testing solutions that analyze air, water, and soil; and testing and tools, as well as products that help test nutritional value and identify quality inconsistencies. Its Healthcare segment discovers, develops, manufacturers, and markets prescription drugs and biopharmaceuticals for the treatment of oncology, neurology and immunology, fertility, endocrinology, as well as cardiovascular, diabetes, thyroid disorders, and multiple sclerosis; general medicines; and injection device and disease monitoring software. The Electronics segment supplies materials for the semiconductor and display industries and surface design, such as delivery systems and services, as well as surface solutions, including cosmetics, effect pigments, and functional solutions. In addition, it has in-licensing agreement with Debiopharm International SA for developing and commercializing drug candidates for the treatment of head and neck cancer; Jiangsu Hengrui Pharmaceuticals Co. Ltd. for developing, manufacturing, and commercializing drug candidates for the treatment of metastatic colorectal cancer; and Abbisko Therapeutics Co. Ltd. for developing and commercializing of drug candidates for the treatment of tenosynovial giant cell tumor, as well as license and collaboration agreement with Merck KGaA to discover two targeted protein degraders against critical oncogenic proteins. The company was founded in 1668 and is headquartered in Darmstadt, Germany. Merck KGaA operates as a subsidiary of E. Merck KGaA.

About MorphoSys

MorphoSys AG, together with its subsidiaries, engages in the development and commercialization of therapeutics for patients suffering from various cancers in Europe, Asia, and the United States. The company's product pipeline includes Pelabresib that is in Phase 3 trials to treat myelofibrosis and thrombocythemia; Tulmimetostat, a product candidate in Phase 1/2 trials for the treatment of solid tumors and lymphomas; Felzartamab, an antibody directed against CD38 for renal autoimmune diseases and relapsed/refractory multiple myeloma; Ianalumab, a candidate in Phase 3 clinical trials for Sjögren's disease, lupus nephritis, and other autoimmune diseases; Abelacimab that is in Phase 3 trials for venous thromboembolism prevention and cancer-associated thrombosis; Setrusumab, which is in Phase 2/3 trials for osteogenesis imperfecta; and Bimagrumab, a product candidate in Phase 2b trials for adult obesity. It also develops MOR210/TJ210/HIB210 that is in Phase 1 clinical trials for relapsed or refractory advanced solid tumors; and NOV-8, a candidate in Phase 2 trials for the treatment of pulmonary sarcoidosis and dermatitis. The company has collaboration and licensing agreements with I-Mab Biopharma, Novartis, Anthos Therapeutics, Ultragenyx, Mereo BioPharma, Lilly, Human Immunology Biosciences, Inc. Incyte Corporation, and Xencor, Inc. MorphoSys AG was founded in 1992 and is headquartered in Planegg, Germany.