Head to Head Review: Larimar Therapeutics (NASDAQ:LRMR) versus Madrigal Pharmaceuticals (NASDAQ:MDGL)

Madrigal Pharmaceuticals (NASDAQ:MDGL) and Larimar Therapeutics (NASDAQ:LRMR) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Volatility and Risk

Madrigal Pharmaceuticals has a beta of -1.08, suggesting that its stock price is 208% less volatile than the S&P 500. Comparatively, Larimar Therapeutics has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Madrigal Pharmaceuticals	$317.38 million	20.68	-$373.63 million	($18.05)	-16.38
Larimar Therapeutics	N/A	N/A	-$36.95 million	($1.49)	-1.93

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Madrigal Pharmaceuticals and Larimar Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Madrigal Pharmaceuticals	0	1	8	0	2.89
Larimar Therapeutics	0	0	8	1	3.11

Madrigal Pharmaceuticals currently has a consensus price target of $420.63, suggesting a potential upside of 42.31%. Larimar Therapeutics has a consensus price target of $19.67, suggesting a potential upside of 582.87%. Given Larimar Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Larimar Therapeutics is more favorable than Madrigal Pharmaceuticals.

Institutional & Insider Ownership

98.5% of Madrigal Pharmaceuticals shares are held by institutional investors. Comparatively, 91.9% of Larimar Therapeutics shares are held by institutional investors. 21.5% of Madrigal Pharmaceuticals shares are held by company insiders. Comparatively, 4.5% of Larimar Therapeutics 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 Madrigal Pharmaceuticals and Larimar Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Madrigal Pharmaceuticals	N/A	-71.78%	-53.25%
Larimar Therapeutics	N/A	-35.87%	-32.37%

Summary

Larimar Therapeutics beats Madrigal Pharmaceuticals on 9 of the 12 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 Larimar Therapeutics

Larimar Therapeutics, Inc., a clinical-stage biotechnology company, focuses on developing treatments for rare diseases using its novel cell penetrating peptide technology platform. Its lead product candidate is CTI-1601, which is in Phase 2 OLE clinical trial for the treatment of Friedreich's ataxia, a rare, progressive and fatal genetic disease. Larimar Therapeutics, Inc. is based in Bala Cynwyd, Pennsylvania.