Madrigal Pharmaceuticals (NASDAQ:MDGL) & MacroGenics (NASDAQ:MGNX) Head-To-Head Survey

MacroGenics (NASDAQ:MGNX) and Madrigal Pharmaceuticals (NASDAQ:MDGL) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.

Risk and Volatility

MacroGenics has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Madrigal Pharmaceuticals has a beta of -1.04, meaning that its share price is 204% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for MacroGenics and Madrigal Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MacroGenics	1	3	2	0	2.17
Madrigal Pharmaceuticals	1	2	15	0	2.78

MacroGenics presently has a consensus price target of $6.33, indicating a potential upside of 69.34%. Madrigal Pharmaceuticals has a consensus price target of $710.20, indicating a potential upside of 50.55%. Given MacroGenics’ higher probable upside, equities research analysts plainly believe MacroGenics is more favorable than Madrigal Pharmaceuticals.

Valuation and Earnings

This table compares MacroGenics and Madrigal Pharmaceuticals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MacroGenics	$149.50 million	1.59	-$74.62 million	($0.22)	-17.00
Madrigal Pharmaceuticals	$1.28 billion	8.49	-$288.28 million	($12.89)	-36.60

MacroGenics has higher earnings, but lower revenue than Madrigal Pharmaceuticals. Madrigal Pharmaceuticals is trading at a lower price-to-earnings ratio than MacroGenics, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

96.9% of MacroGenics shares are owned by institutional investors. Comparatively, 98.5% of Madrigal Pharmaceuticals shares are owned by institutional investors. 13.6% of MacroGenics shares are owned by company insiders. Comparatively, 17.6% of Madrigal Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares MacroGenics and Madrigal Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MacroGenics	-8.70%	-109.26%	-18.70%
Madrigal Pharmaceuticals	-25.32%	-56.65%	-25.53%

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.

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.