Financial Review: Mirum Pharmaceuticals (NASDAQ:MIRM) versus ADC Therapeutics (NYSE:ADCT)

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

Profitability

This table compares Mirum Pharmaceuticals and ADC Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mirum Pharmaceuticals	-134.75%	-97.25%	-12.59%
ADC Therapeutics	-95.73%	N/A	-28.26%

Earnings and Valuation

This table compares Mirum Pharmaceuticals and ADC Therapeutics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mirum Pharmaceuticals	$521.31 million	11.69	-$23.36 million	($15.47)	-6.03
ADC Therapeutics	$81.36 million	2.43	-$142.62 million	($0.52)	-2.70

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

Institutional and Insider Ownership

41.1% of ADC Therapeutics shares are held by institutional investors. 8.3% of Mirum Pharmaceuticals shares are held by insiders. Comparatively, 5.1% of ADC Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Mirum Pharmaceuticals has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, ADC Therapeutics has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Mirum Pharmaceuticals and ADC Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mirum Pharmaceuticals	1	0	13	1	2.93
ADC Therapeutics	1	2	3	0	2.33

Mirum Pharmaceuticals presently has a consensus target price of $155.56, suggesting a potential upside of 66.68%. ADC Therapeutics has a consensus target price of $5.00, suggesting a potential upside of 255.87%. Given ADC Therapeutics’ higher probable upside, analysts clearly believe ADC Therapeutics is more favorable than Mirum Pharmaceuticals.

Summary

Mirum Pharmaceuticals beats ADC Therapeutics on 8 of the 14 factors compared between the two stocks.

About Mirum Pharmaceuticals

Mirum Pharmaceuticals is a biopharmaceutical company focused on developing and commercializing treatments for rare liver and other serious diseases. Founded in 2018, the company works on therapies for conditions with limited treatment options. Its commercial products include Livmarli (maralixibat), an oral treatment for cholestatic pruritus associated with Alagille syndrome and, in the United States, progressive familial intrahepatic cholestasis. Mirum also markets Cholbam (cholic acid) for certain bile acid synthesis disorders and Chenodal (chenodiol) for cerebrotendinous xanthomatosis.

About ADC Therapeutics

ADC Therapeutics is a biotechnology company headquartered in Epalinges, Switzerland. It develops antibody-drug conjugates (ADCs), medicines designed to use antibodies to deliver cell-killing agents to cancer cells. Its research has focused on blood cancers and solid tumors. The company’s lead product, ZYNLONTA (loncastuximab tesirine-lpyl), is an ADC that targets CD19. In the United States, it is approved for adults with relapsed or refractory large B-cell lymphoma after they have received two or more prior systemic treatments.