Financial Analysis: MacroGenics (NASDAQ:MGNX) & NewAmsterdam Pharma (NASDAQ:NAMS)

MacroGenics (NASDAQ:MGNX) and NewAmsterdam Pharma (NASDAQ:NAMS) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Institutional & Insider Ownership

96.9% of MacroGenics shares are held by institutional investors. Comparatively, 89.9% of NewAmsterdam Pharma shares are held by institutional investors. 13.6% of MacroGenics shares are held by insiders. Comparatively, 12.7% of NewAmsterdam Pharma shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares MacroGenics and NewAmsterdam Pharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MacroGenics	-8.70%	-109.26%	-18.70%
NewAmsterdam Pharma	-3,644.21%	-34.81%	-31.50%

Analyst Recommendations

This is a summary of recent ratings and price targets for MacroGenics and NewAmsterdam Pharma, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MacroGenics	1	2	3	0	2.33
NewAmsterdam Pharma	1	1	9	1	2.83

MacroGenics currently has a consensus target price of $6.33, suggesting a potential upside of 189.19%. NewAmsterdam Pharma has a consensus target price of $48.90, suggesting a potential upside of 150.38%. Given MacroGenics’ higher probable upside, equities analysts clearly believe MacroGenics is more favorable than NewAmsterdam Pharma.

Risk and Volatility

MacroGenics has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, NewAmsterdam Pharma has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500.

Valuation and Earnings

This table compares MacroGenics and NewAmsterdam Pharma”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MacroGenics	$149.50 million	0.93	-$74.62 million	($0.22)	-9.95
NewAmsterdam Pharma	$22.50 million	103.76	-$203.82 million	($2.16)	-9.04

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

Summary

MacroGenics beats NewAmsterdam Pharma on 9 of the 15 factors compared between the two stocks.

About MacroGenics

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 NewAmsterdam Pharma

NewAmsterdam Pharma Company N.V., a late-stage biopharmaceutical company, develops therapies to enhance patient care in populations with metabolic disease. It is developing obicetrapib, an oral low-dose cholesteryl ester transfer protein (CETP) inhibitor, that is in various clinical trials as a monotherapy and a combination therapy with ezetimibe for lowering LDL-C for cardiovascular diseases. The company also develops Obicetrapib which is in Phase 2a clinical trial for Alzheimer’s disease. NewAmsterdam Pharma Company N.V. is headquartered in Naarden, the Netherlands.