Critical Review: Mirum Pharmaceuticals (NASDAQ:MIRM) and Incyte (NASDAQ:INCY)

Mirum Pharmaceuticals (NASDAQ:MIRM) and Incyte (NASDAQ:INCY) are both healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Insider & Institutional Ownership

97.0% of Incyte shares are owned by institutional investors. 8.3% of Mirum Pharmaceuticals shares are owned by insiders. Comparatively, 16.2% of Incyte shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Mirum Pharmaceuticals and Incyte”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mirum Pharmaceuticals	$618.07 million	8.42	-$23.36 million	($14.55)	-5.51
Incyte	$5.82 billion	3.94	$1.29 billion	$7.85	14.40

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

Volatility and Risk

Mirum Pharmaceuticals has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Incyte has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Mirum Pharmaceuticals and Incyte, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mirum Pharmaceuticals	1	0	13	1	2.93
Incyte	1	12	11	1	2.48

Mirum Pharmaceuticals presently has a consensus price target of $147.88, indicating a potential upside of 84.52%. Incyte has a consensus price target of $129.33, indicating a potential upside of 14.38%. Given Mirum Pharmaceuticals’ stronger consensus rating and higher possible upside, equities analysts clearly believe Mirum Pharmaceuticals is more favorable than Incyte.

Profitability

This table compares Mirum Pharmaceuticals and Incyte’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mirum Pharmaceuticals	-139.18%	-36.28%	-8.54%
Incyte	27.71%	29.93%	22.88%

Summary

Incyte beats Mirum Pharmaceuticals on 10 of the 14 factors compared between the two stocks.

About Mirum Pharmaceuticals

Mirum Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of novel therapies for debilitating rare and orphan diseases. Its lead product candidate is LIVMARLI (maralixibat), an orally administered and minimally absorbed ileal bile acid transporter (IBAT) inhibitor that is approved for the treatment of cholestatic pruritus in patients with Alagille syndrome in the United States and internationally. The company is also involved in the commercialization of Cholbam, a cholic acid capsule, which is approved as treatment for pediatric and adult patients with bile acid synthesis disorders due to single enzyme defects and for adjunctive treatment of patients with peroxisomal disorders, including peroxisome biogenesis disorder-Zellweger spectrum disorder and Smith-Lemli-Opitz syndrome; and Chenodal, a tablet, which is approved for the treatment of radiolucent stones in the gallbladder, and under Phase 3 development for the treatment cerebrotendinous xanthomatosis. In addition, it develops Volixibat, an oral and minimally absorbed agent designed to inhibit IBAT, currently under Phase 2b clinical trial for the treatment of adult patients with cholestatic liver diseases. The company was incorporated in 2018 and is headquartered in Foster City, California.

About Incyte

Incyte Corporation, a biopharmaceutical company, engages in the discovery, development, and commercialization of therapeutics for hematology/oncology, and inflammation and autoimmunity areas in the United States and internationally. The company offers JAKAFI (ruxolitinib) for treatment of intermediate or high-risk myelofibrosis, polycythemia vera, and steroid-refractory acute graft-versus-host disease; MONJUVI (tafasitamab-cxix)/MINJUVI (tafasitamab) for relapsed or refractory diffuse large B-cell lymphoma; PEMAZYRE (pemigatinib), a fibroblast growth factor receptor kinase inhibitor that act as oncogenic drivers in liquid and solid tumor types; ICLUSIG (ponatinib) to treat chronic myeloid leukemia and Philadelphia-chromosome positive acute lymphoblastic leukemia; and ZYNYZ (retifanlimab-dlwr) to treat adults with metastatic or recurrent locally advanced Merkel cell carcinoma, as well as OPZELURA cream for treatment of atopic dermatitis. Its clinical stage products include retifanlimab under Phase 3 clinical trials for squamous cell carcinoma of the anal canal and non-small cell lung cancer; axatilimab, an anti-CSF-1R monoclonal antibody under Phase 2 that is being developed as a therapy for patients with chronic GVHD; INCA033989 to inhibit oncogenesis; INCB160058, which is being developed as a disease-modifying therapeutic; and INCB99280 and INCB99318 for the treatment solid tumors. The company also develops INCB123667, INCA32459, and INCA33890, as well as Ruxolitinib cream, Povorcitinib, and INCA034460. It has collaboration out-license agreements with Novartis and Lilly; in-license agreements with Agenus, Merus, MacroGenics, and Syndax; and collaboration and license agreement with China Medical System Holdings Limited for the development and commercialization of povorcitinib. The company sells its products to specialty, retail, and hospital pharmacies, distributors, and wholesalers. The company was formerly known as Incyte Genomics Inc and changed its name to Incyte Corporation in March 2003. Incyte Corporation was incorporated in 1991 and is headquartered in Wilmington, Delaware.