Arvinas (NASDAQ:ARVN – Get Free Report) and Mustang Bio (NASDAQ:MBIO – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.
Profitability
This table compares Arvinas and Mustang Bio’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Arvinas | -75.51% | -33.75% | -16.75% |
| Mustang Bio | N/A | N/A | -172.89% |
Valuation & Earnings
This table compares Arvinas and Mustang Bio”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arvinas | $426.90 million | 1.19 | -$198.90 million | ($0.66) | -10.53 |
| Mustang Bio | N/A | N/A | -$51.60 million | ($78.00) | -0.01 |
Mustang Bio has lower revenue, but higher earnings than Arvinas. Arvinas is trading at a lower price-to-earnings ratio than Mustang Bio, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Arvinas has a beta of 2.21, suggesting that its share price is 121% more volatile than the S&P 500. Comparatively, Mustang Bio has a beta of 2.27, suggesting that its share price is 127% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for Arvinas and Mustang Bio, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arvinas | 0 | 8 | 11 | 0 | 2.58 |
| Mustang Bio | 0 | 0 | 1 | 0 | 3.00 |
Arvinas presently has a consensus price target of $20.97, indicating a potential upside of 201.74%. Mustang Bio has a consensus price target of $100.00, indicating a potential upside of 8,710.57%. Given Mustang Bio’s stronger consensus rating and higher probable upside, analysts plainly believe Mustang Bio is more favorable than Arvinas.
Institutional & Insider Ownership
95.2% of Arvinas shares are held by institutional investors. Comparatively, 9.9% of Mustang Bio shares are held by institutional investors. 5.2% of Arvinas shares are held by company insiders. Comparatively, 0.2% of Mustang Bio shares are held by company 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
Mustang Bio beats Arvinas on 7 of the 13 factors compared between the two stocks.
About Arvinas
Arvinas, Inc., a clinical-stage biotechnology company, engages in the discovery, development, and commercialization of therapies to degrade disease-causing proteins. The company engineers proteolysis targeting chimeras (PROTAC) targeted protein degraders that are designed to harness the body’s own natural protein disposal system to degrade and remove disease-causing proteins. Its product pipeline includes Bavdegalutamide and ARV-766, investigational orally bioavailable PROTAC protein degraders for the treatment of men with metastatic castration-resistant prostate cancer, which are in Phase 1/2 clinical trials; and ARV-471, an orally bioavailable estrogen receptor degrading PROTAC targeted protein degrader for the treatment of patients with locally advanced or metastatic estrogen receptor+/human epidermal growth factor receptor 2-breast cancer, which is Phase 3 clinical trial. Arvinas, Inc. has collaborations with Pfizer Inc., Genentech, Inc., F. Hoffman-La Roche Ltd., Carrick Therapeutics Limited, and Bayer AG. The company was founded in 2013 and is based in New Haven, Connecticut.
About Mustang Bio
Mustang Bio, Inc., a clinical-stage biopharmaceutical company, focuses on translating medical breakthroughs in cell and gene therapies into potential cures for hematologic cancers, solid tumors, and rare genetic diseases. Its pipeline focuses on gene therapy programs for rare genetic disorders, chimeric antigen receptor (CAR) engineered T cell (CAR T) therapies for hematologic malignancies, and CAR T therapies for solid tumors. The company develops MB-117 and MB-217, a gene therapy program for X-linked severe combined immunodeficiency, a rare genetic immune system condition in which affected patients do not live beyond infancy without treatment. The company also develops MB-106 CAR T cell program for B cell non-hodgkin lymphoma and chronic lymphocytic leukemia; MB-101 CAR T cell program for glioblastoma; MB-108, a next-generation oncolytic herpes simplex virus. It has license agreements with Nationwide Children's Hospital, CSL Behring; Mayo Clinic; Leiden University Medical Centre; SIRION Biotech GmbH. The company was incorporated in 2015 and is headquartered in Worcester, Massachusetts.
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