Adicet Bio (NASDAQ:ACET) versus Madrigal Pharmaceuticals (NASDAQ:MDGL) Head-To-Head Survey

Adicet Bio (NASDAQ:ACET) and Madrigal Pharmaceuticals (NASDAQ:MDGL) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Risk and Volatility

Adicet Bio has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, Madrigal Pharmaceuticals has a beta of -0.91, indicating that its stock price is 191% less volatile than the S&P 500.

Valuation & Earnings

This table compares Adicet Bio and Madrigal Pharmaceuticals”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adicet Bio	$24.99 million	2.57	-$142.66 million	($1.30)	-0.60
Madrigal Pharmaceuticals	$317.38 million	20.35	-$373.63 million	($18.05)	-16.12

Adicet Bio has higher earnings, but lower revenue than Madrigal Pharmaceuticals. Madrigal Pharmaceuticals is trading at a lower price-to-earnings ratio than Adicet Bio, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Adicet Bio and Madrigal Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adicet Bio	N/A	-53.85%	-46.45%
Madrigal Pharmaceuticals	N/A	-71.78%	-53.25%

Insider & Institutional Ownership

83.9% of Adicet Bio shares are held by institutional investors. Comparatively, 98.5% of Madrigal Pharmaceuticals shares are held by institutional investors. 7.8% of Adicet Bio shares are held by company insiders. Comparatively, 21.5% of Madrigal Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Adicet Bio and Madrigal Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adicet Bio	0	2	3	0	2.60
Madrigal Pharmaceuticals	0	1	9	0	2.90

Adicet Bio currently has a consensus price target of $7.50, indicating a potential upside of 865.00%. Madrigal Pharmaceuticals has a consensus price target of $416.33, indicating a potential upside of 43.09%. Given Adicet Bio’s higher probable upside, research analysts clearly believe Adicet Bio is more favorable than Madrigal Pharmaceuticals.

Summary

Adicet Bio beats Madrigal Pharmaceuticals on 7 of the 13 factors compared between the two stocks.

About Adicet Bio

Adicet Bio, Inc., a clinical stage biotechnology company, discovers and develops allogeneic gamma delta T cell therapies for autoimmune diseases and cancer. The company offers gamma delta T cells engineered with chimeric antigen receptors (CARs) to facilitate durable activity in patients. Its lead product candidate is ADI-001, an allogeneic gamma delta T cell therapy expressing a CAR targeting CD20, which is in Phase I clinical trial for the treatment of autoimmune diseases and relapsed or refractory aggressive B cell non-Hodgkin's lymphoma. The company is also developing ADI-270, an armored gamma delta CAR T cell product candidate targeting renal cell carcinoma for treating other CD70+ solid tumor and hematological malignancies indications. The company was founded in 2014 and is based in Boston, Massachusetts.

About Madrigal Pharmaceuticals

Madrigal Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development of therapeutics for the treatment of non-alcoholic steatohepatitis (NASH) in the United States. Its lead product candidate is resmetirom, a liver-directed thyroid hormone receptor beta agonist, which is in Phase 3 clinical trials for treating NASH. The company is headquartered in West Conshohocken, Pennsylvania.