MacroGenics (NASDAQ:MGNX) and Arrowhead Pharmaceuticals (NASDAQ:ARWR) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.
Valuation and Earnings
This table compares MacroGenics and Arrowhead 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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MacroGenics | $64.19 million | 29.11 | $-151,810,000.00 | ($3.16) | -9.86 |
Arrowhead Pharmaceuticals | $87.99 million | 73.31 | $-84,550,000.00 | ($0.84) | -73.99 |
Arrowhead Pharmaceuticals has higher revenue and earnings than MacroGenics. Arrowhead Pharmaceuticals is trading at a lower price-to-earnings ratio than MacroGenics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares MacroGenics and Arrowhead Pharmaceuticals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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MacroGenics | -204.31% | -65.84% | -49.41% |
Arrowhead Pharmaceuticals | -96.09% | -17.37% | -15.19% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for MacroGenics and Arrowhead Pharmaceuticals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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MacroGenics | 1 | 1 | 9 | 0 | 2.73 |
Arrowhead Pharmaceuticals | 0 | 2 | 10 | 0 | 2.83 |
MacroGenics presently has a consensus target price of $33.30, suggesting a potential upside of 6.87%. Arrowhead Pharmaceuticals has a consensus target price of $85.3077, suggesting a potential upside of 37.26%. Given Arrowhead Pharmaceuticals' stronger consensus rating and higher probable upside, analysts plainly believe Arrowhead Pharmaceuticals is more favorable than MacroGenics.
Risk and Volatility
MacroGenics has a beta of 2.4, meaning that its share price is 140% more volatile than the S&P 500. Comparatively, Arrowhead Pharmaceuticals has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500.
Insider and Institutional Ownership
95.8% of MacroGenics shares are owned by institutional investors. Comparatively, 65.5% of Arrowhead Pharmaceuticals shares are owned by institutional investors. 9.0% of MacroGenics shares are owned by insiders. Comparatively, 4.0% of Arrowhead Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Arrowhead Pharmaceuticals beats MacroGenics on 10 of the 14 factors compared between the two stocks.