Metagenomi (NASDAQ:MGX – Get Free Report) and Madrigal Pharmaceuticals (NASDAQ:MDGL – Get Free Report) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.
Insider & Institutional Ownership
98.5% of Madrigal Pharmaceuticals shares are owned by institutional investors. 17.8% of Metagenomi shares are owned by company insiders. Comparatively, 21.5% of Madrigal Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Metagenomi and Madrigal Pharmaceuticals”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Metagenomi | $52.29 million | 1.15 | -$78.06 million | ($2.40) | -0.67 |
| Madrigal Pharmaceuticals | $180.13 million | 73.59 | -$465.89 million | ($13.01) | -44.87 |
Metagenomi has higher earnings, but lower revenue than Madrigal Pharmaceuticals. Madrigal Pharmaceuticals is trading at a lower price-to-earnings ratio than Metagenomi, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and target prices for Metagenomi and Madrigal Pharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Metagenomi | 1 | 0 | 3 | 1 | 2.80 |
| Madrigal Pharmaceuticals | 1 | 1 | 12 | 1 | 2.87 |
Metagenomi presently has a consensus target price of $10.00, suggesting a potential upside of 525.00%. Madrigal Pharmaceuticals has a consensus target price of $624.08, suggesting a potential upside of 6.91%. Given Metagenomi’s higher probable upside, equities research analysts clearly believe Metagenomi is more favorable than Madrigal Pharmaceuticals.
Risk & Volatility
Metagenomi has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, Madrigal Pharmaceuticals has a beta of -1.04, indicating that its stock price is 204% less volatile than the S&P 500.
Profitability
This table compares Metagenomi and Madrigal Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Metagenomi | -287.06% | -43.19% | -31.06% |
| Madrigal Pharmaceuticals | -39.04% | -41.50% | -26.18% |
Summary
Madrigal Pharmaceuticals beats Metagenomi on 9 of the 14 factors compared between the two stocks.
About Metagenomi
Metagenomi, Inc., a genetic medicines company, develops therapeutics for patients using metagenomics-derived genome editing toolbox in the United States. The company's genome editing toolbox includes programmable nucleases, base editors, and RNA and DNA-mediated integration systems, such as prime editing systems and clustered regularly interspaced short palindromic repeat-associated transposases. It has a strategic collaboration and license agreement with ModernaTX, Inc. focusing on new genome editing system for in vivo human therapeutic applications; a development, option, and license agreement with Affini-T Therapeutics, Inc. to develop and commercialize gene edited T-cell receptor-based therapeutic products in the field of treatment, prevention, or diagnosis of human cancer; and a collaboration and license agreement with Ionis Pharmaceuticals, Inc. to research, develop, and commercialize investigational medicines using genome editing technologies. The company was incorporated in 2016 and is based in Emeryville, California.
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.
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