MannKind (NASDAQ:MNKD) versus MeiraGTx (NASDAQ:MGTX) Financial Analysis

MeiraGTx (NASDAQ:MGTX) and MannKind (NASDAQ:MNKD) are both small-cap healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Risk & Volatility

MeiraGTx has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, MannKind has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Institutional and Insider Ownership

67.5% of MeiraGTx shares are held by institutional investors. Comparatively, 49.5% of MannKind shares are held by institutional investors. 7.4% of MeiraGTx shares are held by company insiders. Comparatively, 2.6% of MannKind shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares MeiraGTx and MannKind’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MeiraGTx	19.87%	283.85%	29.39%
MannKind	-11.08%	-11.21%	-6.31%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for MeiraGTx and MannKind, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MeiraGTx	1	0	5	2	3.00
MannKind	2	1	6	0	2.44

MeiraGTx currently has a consensus price target of $26.17, indicating a potential upside of 88.38%. MannKind has a consensus price target of $8.39, indicating a potential upside of 106.72%. Given MannKind’s higher probable upside, analysts clearly believe MannKind is more favorable than MeiraGTx.

Earnings and Valuation

This table compares MeiraGTx and MannKind”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MeiraGTx	$81.39 million	16.39	-$114.20 million	$0.71	19.56
MannKind	$348.97 million	3.74	$5.86 million	($0.13)	-31.23

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

Summary

MeiraGTx beats MannKind on 11 of the 15 factors compared between the two stocks.

About MeiraGTx

MeiraGTx Holdings plc, a clinical stage gene therapy company, focusing on developing treatments for patients with serious diseases. The company develops various therapies for ocular diseases, including inherited retinal diseases and large degenerative ocular diseases, neurodegenerative diseases, and xerostomia. Its programs in clinical development include Phase I/II clinical stage programs in achromatopsia, X-linked retinitis pigmentosa, and RPE65-deficiency; Phase I clinical trials for radiation-induced xerostomia; and Parkinson's program that has completed a Phase II trial. It has a research collaboration agreement with Janssen Pharmaceuticals, Inc. for the research, development, and commercialization of gene therapies for the treatment of inherited retinal disease. The company was incorporated in 2015 and is based in New York, New York.

About MannKind

MannKind Corporation, a biopharmaceutical company, focuses on the development and commercialization of inhaled therapeutic products for endocrine and orphan lung diseases in the United States. It offers Afrezza, an inhaled insulin used to improve glycemic control in adults with diabetes, and the V-Go wearable insulin delivery device, which provides continuous subcutaneous infusion of insulin in adults. The company's product pipeline also includes Tyvaso DPI (Treprostinil), an inhalation powder for the treatment of pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease; MNKD-101, a nebulized formulation of clofazimine, for the treatment of severe chronic and recurrent pulmonary infections, including nontuberculous mycobacterial lung disease; MNKD-201, a dry-powder formulation of nintedanib, for the treatment of idiopathic pulmonary fibrosis (IPF). In addition, it has collaboration and license agreement with United Therapeutics Corporation for development, regulatory, and commercial activities of Tyvaso DPI; co-promotion agreement with Vertice Pharma to promote Thyquidity; and collaboration agreement with Thirona to evaluate the therapeutic for the treatment of pulmonary fibrosis. Further, the company has supply and distribution agreement with Biomm S.A. for the commercialization of Afrezza in Brazil; and license and distribution agreement with Cipla Ltd. for the marketing and distribution of Afrezza in India. MannKind Corporation was incorporated in 1991 and is headquartered in Danbury, Connecticut.