Genmab A/S (NASDAQ:GMAB) & Arvinas (NASDAQ:ARVN) Financial Analysis

Arvinas (NASDAQ:ARVN) and Genmab A/S (NASDAQ:GMAB) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.

Volatility and Risk

Arvinas has a beta of 1.8, meaning that its stock price is 80% more volatile than the S&P 500. Comparatively, Genmab A/S has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Earnings and Valuation

This table compares Arvinas and Genmab A/S”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arvinas	$262.60 million	1.82	-$80.80 million	$0.10	74.10
Genmab A/S	$3.72 billion	5.83	$963.00 million	$1.27	27.36

Genmab A/S has higher revenue and earnings than Arvinas. Genmab A/S is trading at a lower price-to-earnings ratio than Arvinas, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for Arvinas and Genmab A/S, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arvinas	2	3	5	0	2.30
Genmab A/S	0	3	9	1	2.85

Arvinas currently has a consensus target price of $14.55, indicating a potential upside of 96.29%. Genmab A/S has a consensus target price of $39.50, indicating a potential upside of 13.67%. Given Arvinas’ higher possible upside, equities research analysts plainly believe Arvinas is more favorable than Genmab A/S.

Insider & Institutional Ownership

95.2% of Arvinas shares are owned by institutional investors. Comparatively, 7.1% of Genmab A/S shares are owned by institutional investors. 7.3% of Arvinas shares are owned by insiders. Comparatively, 1.5% of Genmab A/S shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Arvinas and Genmab A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arvinas	2.94%	1.91%	1.29%
Genmab A/S	19.08%	14.89%	7.73%

Summary

Genmab A/S beats Arvinas on 10 of the 15 factors compared between the two stocks.

About Arvinas

Arvinas, Inc., a clinical-stage biotechnology company, engages in the discovery, development, and commercialization of therapies to degrade disease-causing proteins. The company engineers proteolysis targeting chimeras (PROTAC) targeted protein degraders that are designed to harness the body’s own natural protein disposal system to degrade and remove disease-causing proteins. Its product pipeline includes Bavdegalutamide and ARV-766, investigational orally bioavailable PROTAC protein degraders for the treatment of men with metastatic castration-resistant prostate cancer, which are in Phase 1/2 clinical trials; and ARV-471, an orally bioavailable estrogen receptor degrading PROTAC targeted protein degrader for the treatment of patients with locally advanced or metastatic estrogen receptor+/human epidermal growth factor receptor 2-breast cancer, which is Phase 3 clinical trial. Arvinas, Inc. has collaborations with Pfizer Inc., Genentech, Inc., F. Hoffman-La Roche Ltd., Carrick Therapeutics Limited, and Bayer AG. The company was founded in 2013 and is based in New Haven, Connecticut.

About Genmab A/S

Genmab A/S develops antibody therapeutics for the treatment of cancer and other diseases primarily in Denmark. The company markets DARZALEX, a human monoclonal antibody for the treatment of patients with multiple myeloma (MM); teprotumumab for the treatment of thyroid eye disease; and Amivantamab for advanced or metastatic gastric or esophageal cancer and NSCLC. Its products include daratumumab to treat MM, non-MM blood cancers, and AL amyloidosis; GEN1047; tisotumab vedotin for treating cervical, ovarian, and solid cancers; DuoBody-PD-L1x4-1BB, and DuoBody-CD40x4-1BB for treating solid tumors; Epcoritamab for relapsed/refractory diffuse large B-cell lymphoma and chronic lymphocytic leukemia; and HexaBody-CD38 and GEN3017 for treating hematological malignancies. In addition, the company develops Inclacumab, which is in Phase 3 trial for vaso-occlusive crises; Camidanlumab tesirine to treat hodgkin lymphoma and solid tumors; JNJ-64007957 and JNJ-64407564 to treat MM; PRV-015 for treating celiac disease; Mim8 for treating haemophilia A; and Lu AF82422 for treating multiple system atrophy disease. It operates various active pre-clinical programs. The company has a commercial license and collaboration agreement with Seagen Inc. to co-develop tisotumab vedotin. It also has a collaboration agreement with argenx to discover, develop, and commercialize novel therapeutic antibodies with applications in immunology and oncology; and AbbVie for the development of epcoritamab, as well as collaborations with BioNTech, Janssen, and Novo Nordisk A/S. Genmab A/S was founded in 1999 and is headquartered in Copenhagen, Denmark.