Head to Head Survey: Madrigal Pharmaceuticals (NASDAQ:MDGL) vs. Metagenomi (NASDAQ:MGX)

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

Earnings & Valuation

This table compares Madrigal Pharmaceuticals and Metagenomi”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Madrigal Pharmaceuticals	$180.13 million	73.42	-$465.89 million	($13.01)	-44.76
Metagenomi	$52.29 million	1.16	-$78.06 million	($2.40)	-0.68

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

Risk and Volatility

Madrigal Pharmaceuticals has a beta of -1, indicating that its share price is 200% less volatile than the S&P 500. Comparatively, Metagenomi has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.

Institutional & Insider Ownership

98.5% of Madrigal Pharmaceuticals shares are held by institutional investors. 21.5% of Madrigal Pharmaceuticals shares are held by company insiders. Comparatively, 17.8% of Metagenomi shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Madrigal Pharmaceuticals and Metagenomi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Madrigal Pharmaceuticals	-39.04%	-41.50%	-26.18%
Metagenomi	-287.06%	-43.19%	-31.06%

Analyst Ratings

This is a breakdown of current recommendations for Madrigal Pharmaceuticals and Metagenomi, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Madrigal Pharmaceuticals	1	1	12	1	2.87
Metagenomi	1	0	3	1	2.80

Madrigal Pharmaceuticals currently has a consensus target price of $624.08, indicating a potential upside of 7.17%. Metagenomi has a consensus target price of $10.00, indicating a potential upside of 517.28%. Given Metagenomi’s higher probable upside, analysts clearly believe Metagenomi is more favorable than Madrigal Pharmaceuticals.

Summary

Madrigal Pharmaceuticals beats Metagenomi on 9 of the 14 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 Metagenomi

Metagenomi, Inc., a genetic medicines company, develops therapeutics for patients using metagenomics-derived genome editing toolbox in the United States. The company's genome editing toolbox includes programmable nucleases, base editors, and RNA and DNA-mediated integration systems, such as prime editing systems and clustered regularly interspaced short palindromic repeat-associated transposases. It has a strategic collaboration and license agreement with ModernaTX, Inc. focusing on new genome editing system for in vivo human therapeutic applications; a development, option, and license agreement with Affini-T Therapeutics, Inc. to develop and commercialize gene edited T-cell receptor-based therapeutic products in the field of treatment, prevention, or diagnosis of human cancer; and a collaboration and license agreement with Ionis Pharmaceuticals, Inc. to research, develop, and commercialize investigational medicines using genome editing technologies. The company was incorporated in 2016 and is based in Emeryville, California.