IGM Biosciences (NASDAQ:IGMS) and Arrowhead Pharmaceuticals (NASDAQ:ARWR) are both mid-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.
Volatility & Risk
IGM Biosciences has a beta of -1.12, indicating that its stock price is 212% less volatile than the S&P 500. Comparatively, Arrowhead Pharmaceuticals has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations and price targets for IGM Biosciences and Arrowhead Pharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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IGM Biosciences | 0 | 1 | 6 | 0 | 2.86 |
Arrowhead Pharmaceuticals | 0 | 2 | 10 | 0 | 2.83 |
IGM Biosciences currently has a consensus price target of $98.8750, indicating a potential upside of 44.36%. Arrowhead Pharmaceuticals has a consensus price target of $85.3077, indicating a potential upside of 37.26%. Given IGM Biosciences' stronger consensus rating and higher probable upside, research analysts clearly believe IGM Biosciences is more favorable than Arrowhead Pharmaceuticals.
Institutional & Insider Ownership
47.6% of IGM Biosciences shares are held by institutional investors. Comparatively, 65.5% of Arrowhead Pharmaceuticals shares are held by institutional investors. 79.3% of IGM Biosciences shares are held by insiders. Comparatively, 4.0% of Arrowhead Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares IGM Biosciences and Arrowhead Pharmaceuticals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
IGM Biosciences | N/A | -33.30% | -30.28% |
Arrowhead Pharmaceuticals | -96.09% | -17.37% | -15.19% |
Valuation and Earnings
This table compares IGM Biosciences and Arrowhead Pharmaceuticals' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
IGM Biosciences | N/A | N/A | $-43,130,000.00 | ($4.80) | -14.27 |
Arrowhead Pharmaceuticals | $87.99 million | 73.31 | $-84,550,000.00 | ($0.84) | -73.99 |
IGM Biosciences has higher earnings, but lower revenue than Arrowhead Pharmaceuticals. Arrowhead Pharmaceuticals is trading at a lower price-to-earnings ratio than IGM Biosciences, indicating that it is currently the more affordable of the two stocks.
Summary
Arrowhead Pharmaceuticals beats IGM Biosciences on 7 of the 13 factors compared between the two stocks.