Werewolf Therapeutics (NASDAQ:HOWL) versus MacroGenics (NASDAQ:MGNX) Critical Review

MacroGenics (NASDAQ:MGNX – Get Free Report) and Werewolf Therapeutics (NASDAQ:HOWL – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.

Valuation and Earnings

This table compares MacroGenics and Werewolf Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MacroGenics $175.14 million 1.21 -$74.62 million ($0.22) -15.14
Werewolf Therapeutics $1.88 million 26.89 -$60.82 million ($0.76) -1.37

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

Insider & Institutional Ownership

96.9% of MacroGenics shares are owned by institutional investors. Comparatively, 64.8% of Werewolf Therapeutics shares are owned by institutional investors. 13.6% of MacroGenics shares are owned by company insiders. Comparatively, 23.6% of Werewolf Therapeutics 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.

Volatility & Risk

MacroGenics has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Werewolf Therapeutics has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.

Profitability

This table compares MacroGenics and Werewolf Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MacroGenics -8.70% -109.26% -18.70%
Werewolf Therapeutics N/A -166.99% -59.88%

Analyst Ratings

This is a summary of current ratings and target prices for MacroGenics and Werewolf Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MacroGenics 1 3 2 0 2.17
Werewolf Therapeutics 1 3 2 1 2.43

MacroGenics presently has a consensus target price of $6.33, suggesting a potential upside of 90.19%. Werewolf Therapeutics has a consensus target price of $4.00, suggesting a potential upside of 284.62%. Given Werewolf Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Werewolf Therapeutics is more favorable than MacroGenics.

Summary

Werewolf Therapeutics beats MacroGenics on 8 of the 14 factors compared between the two stocks.

About MacroGenics

(Get Free Report)

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 Werewolf Therapeutics

(Get Free Report)

Werewolf Therapeutics, Inc., a biopharmaceutical company, develops therapeutics engineered to stimulate the body's immune system for the treatment of cancer. The company, through its proprietary PREDATOR platform, designs conditionally activated molecules that stimulate adaptive and innate immunity for addressing the limitations of conventional proinflammatory immune therapies. Its lead product candidates are WTX-124, a conditionally activated Interleukin-2 INDUKINE molecule that is in Phase I/Ib clinical trial for the treatment of advanced or metastatic solid tumors; and WTX-330, a conditionally activated Interleukin-12 INDUKINE molecule, which is in Phase I clinical trial for the treatment of advanced or metastatic solid tumors and lymphoma. The company is also developing JZP898, a conditionally activated interferon alpha INDUKINE molecule for the treatment of cancer; and WTX-712, an activated Interleukin-21(IL-21) and WTX-518, an activated IL-18 (IL-18) INDUKINE molecule for the treatment of cancer. Werewolf Therapeutics, Inc. was incorporated in 2017 and is headquartered in Watertown, Massachusetts.

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