Regeneron Pharmaceuticals (NASDAQ:REGN) and Madrigal Pharmaceuticals (NASDAQ:MDGL) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.
Analyst Ratings
This is a breakdown of recent ratings for Regeneron Pharmaceuticals and Madrigal Pharmaceuticals, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Regeneron Pharmaceuticals | 0 | 5 | 14 | 1 | 2.80 |
Madrigal Pharmaceuticals | 0 | 3 | 7 | 0 | 2.70 |
Regeneron Pharmaceuticals presently has a consensus price target of $646.2609, suggesting a potential upside of 28.58%. Madrigal Pharmaceuticals has a consensus price target of $167.60, suggesting a potential upside of 34.33%. Given Madrigal Pharmaceuticals' higher probable upside, analysts clearly believe Madrigal Pharmaceuticals is more favorable than Regeneron Pharmaceuticals.
Volatility & Risk
Regeneron Pharmaceuticals has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500. Comparatively, Madrigal Pharmaceuticals has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.
Institutional and Insider Ownership
85.0% of Regeneron Pharmaceuticals shares are held by institutional investors. Comparatively, 74.2% of Madrigal Pharmaceuticals shares are held by institutional investors. 11.8% of Regeneron Pharmaceuticals shares are held by insiders. Comparatively, 41.9% of Madrigal Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Regeneron Pharmaceuticals and Madrigal Pharmaceuticals' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Regeneron Pharmaceuticals | $7.86 billion | 6.85 | $2.12 billion | $21.47 | 23.41 |
Madrigal Pharmaceuticals | N/A | N/A | $-83,950,000.00 | ($5.45) | -22.89 |
Regeneron Pharmaceuticals has higher revenue and earnings than Madrigal Pharmaceuticals. Madrigal Pharmaceuticals is trading at a lower price-to-earnings ratio than Regeneron Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Regeneron Pharmaceuticals and Madrigal Pharmaceuticals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Regeneron Pharmaceuticals | 38.28% | 28.97% | 20.11% |
Madrigal Pharmaceuticals | N/A | -47.64% | -43.21% |
Summary
Regeneron Pharmaceuticals beats Madrigal Pharmaceuticals on 11 of the 14 factors compared between the two stocks.