Karuna Therapeutics (NASDAQ:KRTX – Get Free Report) and Mirati Therapeutics (NASDAQ:MRTX – Get Free Report) are both mid-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.
Earnings & Valuation
This table compares Karuna Therapeutics and Mirati Therapeutics’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Karuna Therapeutics||$10.64 million||637.33||-$276.34 million||($10.93)||-16.44|
|Mirati Therapeutics||$38.19 million||103.87||-$740.87 million||($12.22)||-4.63|
Karuna Therapeutics has higher earnings, but lower revenue than Mirati Therapeutics. Karuna Therapeutics is trading at a lower price-to-earnings ratio than Mirati Therapeutics, indicating that it is currently the more affordable of the two stocks.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Karuna Therapeutics presently has a consensus price target of $259.38, suggesting a potential upside of 44.32%. Mirati Therapeutics has a consensus price target of $59.60, suggesting a potential upside of 5.39%. Given Karuna Therapeutics’ stronger consensus rating and higher probable upside, research analysts plainly believe Karuna Therapeutics is more favorable than Mirati Therapeutics.
This table compares Karuna Therapeutics and Mirati Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Karuna Therapeutics has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Mirati Therapeutics has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.
Karuna Therapeutics beats Mirati Therapeutics on 9 of the 12 factors compared between the two stocks.
About Karuna Therapeutics
Karuna Therapeutics, Inc., a clinical-stage biopharmaceutical company, creates and delivers transformative medicines for people living with psychiatric and neurological conditions. Its lead product candidate includes KarXT, an oral modulator of muscarinic receptors that is in Phase III clinical trial for the treatment of acute psychosis in patients with schizophrenia; and for the treatment of central nervous system disorders, such as negative and cognitive symptoms of schizophrenia and psychosis, as well as for the treatment of various peripheral tissues and dementia-related psychosis, including Alzheimer's disease. The company also focuses on developing other muscarinic-targeted drug candidates; and intends to develop lead candidature TRPC4/5 and KAR-2618 for the treatment of mood and anxiety disorders. Karuna Therapeutics, Inc. has a license agreement with Eli Lilly and Company, and Zai Lab (Shanghai) Co., Ltd; patent license agreement with PureTech Health LLC; and drug discovery partnership with Charles River Laboratories, as well as drug discovery collaboration with PsychoGenics, Inc. The company was formerly known as Karuna Pharmaceuticals, Inc. and changed its name to Karuna Therapeutics, Inc. in March 2019. Karuna Therapeutics, Inc. was incorporated in 2009 and is headquartered in Boston, Massachusetts.
About Mirati Therapeutics
Mirati Therapeutics, Inc., a commercial-stage oncology company, develops novel therapeutics to address the genetic and immunological promoters of cancer in the United States. The company provides KRAZATI, an oral targeted treatment option for adult patients with KRAS G12C-mutated locally advanced or metastatic non-small cell lung (NSCLC), as well as in clinical development as a monotherapy and in combination with other agents. It also develops Sitravatinib, an investigational spectrum-selective kinase inhibitor in Phase 3 clinical development that inhibits receptor tyrosine kinases (RTKs), including TAM family receptors, split family receptors, and RET, which overcomes resistance to checkpoint inhibitor therapy through targeted reversal of an immunosuppressive tumor microenvironment that enhances antigen-specific T cell response and expanding dendritic cell-dependent antigen presentation. In addition, the company pipeline comprises the MRTX1719, an investigational synthetic lethal PRMT5 inhibitor designed to target the PRMT5/methylthioadensoine (MTA) complex and is in clinical development; MRTX0902, a selective SOS1 inhibitor that improves anti-tumor efficacy in combination with targeted mitogen-activated protein kinase (MAPK)-pathway inhibitors, and is in clinical development; and MRTX1133, an investigational lead KRAS G12D compound. It has a collaboration and license agreement with BeiGene, Ltd. to develop, manufacture, and commercialize sitravatinib; and Zai Lab Ltd. to research, develop, manufacture, and commercialize adagrasib in various indications. Mirati Therapeutics, Inc. was founded in 1995 and is headquartered in San Diego, California.
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