Head-To-Head Survey: Larimar Therapeutics (NASDAQ:LRMR) vs. Madrigal Pharmaceuticals (NASDAQ:MDGL)

Madrigal Pharmaceuticals (NASDAQ:MDGL) and Larimar Therapeutics (NASDAQ:LRMR) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Insider & Institutional Ownership

98.5% of Madrigal Pharmaceuticals shares are held by institutional investors. Comparatively, 91.9% of Larimar Therapeutics shares are held by institutional investors. 21.5% of Madrigal Pharmaceuticals shares are held by company insiders. Comparatively, 4.5% of Larimar Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Madrigal Pharmaceuticals and Larimar Therapeutics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Madrigal Pharmaceuticals	$317.38 million	19.60	-$373.63 million	($18.05)	-15.53
Larimar Therapeutics	N/A	N/A	-$36.95 million	($1.49)	-1.79

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

Analyst Recommendations

This is a breakdown of recent recommendations for Madrigal Pharmaceuticals and Larimar Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Madrigal Pharmaceuticals	0	1	9	0	2.90
Larimar Therapeutics	0	0	8	1	3.11

Madrigal Pharmaceuticals presently has a consensus target price of $416.33, suggesting a potential upside of 48.56%. Larimar Therapeutics has a consensus target price of $19.67, suggesting a potential upside of 639.35%. Given Larimar Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Larimar Therapeutics is more favorable than Madrigal Pharmaceuticals.

Profitability

This table compares Madrigal Pharmaceuticals and Larimar Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Madrigal Pharmaceuticals	N/A	-71.78%	-53.25%
Larimar Therapeutics	N/A	-35.87%	-32.37%

Risk & Volatility

Madrigal Pharmaceuticals has a beta of -1.08, meaning that its share price is 208% less volatile than the S&P 500. Comparatively, Larimar Therapeutics has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.

Summary

Larimar Therapeutics beats Madrigal Pharmaceuticals on 9 of the 13 factors compared between the two stocks.

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.

About Larimar Therapeutics

Larimar Therapeutics, Inc., a clinical-stage biotechnology company, focuses on developing treatments for rare diseases using its novel cell penetrating peptide technology platform. Its lead product candidate is CTI-1601, which is in Phase 2 OLE clinical trial for the treatment of Friedreich's ataxia, a rare, progressive and fatal genetic disease. Larimar Therapeutics, Inc. is based in Bala Cynwyd, Pennsylvania.