MacroGenics (NASDAQ:MGNX) & Medtronic (NYSE:MDT) Critical Review

Medtronic (NYSE:MDT) and MacroGenics (NASDAQ:MGNX) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Profitability

This table compares Medtronic and MacroGenics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medtronic	13.00%	14.82%	7.88%
MacroGenics	-49.91%	-120.19%	-29.92%

Valuation and Earnings

This table compares Medtronic and MacroGenics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medtronic	$33.54 billion	3.32	$4.66 billion	$3.59	24.12
MacroGenics	$149.50 million	1.31	-$74.62 million	($1.17)	-2.62

Medtronic has higher revenue and earnings than MacroGenics. MacroGenics is trading at a lower price-to-earnings ratio than Medtronic, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

82.1% of Medtronic shares are held by institutional investors. Comparatively, 96.9% of MacroGenics shares are held by institutional investors. 0.3% of Medtronic shares are held by insiders. Comparatively, 13.0% of MacroGenics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Medtronic and MacroGenics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medtronic	0	10	15	1	2.65
MacroGenics	1	5	2	0	2.13

Medtronic currently has a consensus target price of $109.85, indicating a potential upside of 26.84%. MacroGenics has a consensus target price of $3.80, indicating a potential upside of 23.78%. Given Medtronic’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Medtronic is more favorable than MacroGenics.

Volatility & Risk

Medtronic has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, MacroGenics has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.

Summary

Medtronic beats MacroGenics on 12 of the 15 factors compared between the two stocks.

About Medtronic

Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide. Its Cardiovascular Portfolio segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; cardiac ablation products; insertable cardiac monitor systems; TYRX products; and remote monitoring and patient-centered software. It also provides aortic valves, surgical valve replacement and repair products, endovascular stent grafts and accessories, and transcatheter pulmonary valves; and percutaneous coronary intervention products, percutaneous angioplasty balloons, and products. The company's Medical Surgical Portfolio segment offers surgical stapling devices, vessel sealing instruments, wound closure, electrosurgery products, surgical artificial intelligence and robotic-assisted surgery products, hernia mechanical devices, mesh implants, gynecology and lung products, and various therapies to treat diseases, as well as products in the fields of minimally invasive gastrointestinal and hepatologic diagnostics and therapies, patient monitoring, airway management and ventilation therapies, and renal disease. Its Neuroscience Portfolio segment offers products for spinal surgeons; neurosurgeons; neurologists; pain management specialists; anesthesiologists; orthopedic surgeons; urologists; urogynecologists; interventional radiologists; ear, nose, and throat specialists; and systems that incorporate energy surgical instruments. It also provides image-guided surgery and intra-operative imaging systems and robotic guidance systems used in robot assisted spine procedures; and therapies for vasculature in and around the brain. The company's Diabetes Operating Unit segment offers insulin pumps and consumables, continuous glucose monitoring systems, smart insulin pen systems, and consumables and supplies. The company was founded in 1949 and is headquartered in Dublin, Ireland.

About MacroGenics

MacroGenics, Inc., a biopharmaceutical company, develops, manufactures, and commercializes antibody-based therapeutics to treat cancer in the United States. Its approved product is MARGENZA (margetuximab-cmkb), a human epidermal growth factor receptor 2 (HER2) receptor antagonist indicated, in combination with chemotherapy, for the treatment of adult patients with metastatic HER2-positive breast cancer who have received two or more prior anti-HER2 regimens. The company's pipeline of immuno-oncology product candidates includes MGC018, an antibody drug conjugate (ADC), which targets solid tumors expressing B7-H3; Enoblituzumab, a monoclonal antibody that targets B7-H3; and MGD024, an investigational bispecific CD123 × CD3 DART molecule to minimize cytokine-release syndrome for patients with hematologic malignancies. In addition, it develops Lorigerlimab, a monoclonal antibody that targets the immune checkpoints PD-1 and cytotoxic T-lymphocyte-associated protein 4; Tebotelimab, an investigational tetravalent DART molecule for PD-1 and lymphocyte-activation gene 3; Retifanlimab, a humanized monoclonal antibody targeting programmed death receptor-1; and IMGC936, an ADC that targets ADAM9, a cell surface protein over-expressed in various solid tumor types. Further, the company develops MGD014 and MGD020, a DART molecule to target the envelope protein of human immunodeficiency virus infected cells and CD3 on T cells; Teplizumab for the treatment of type 1 diabetes; and PRV-3279, a CD32B × CD79B DART molecule for the treatment of autoimmune indications. It has collaborations with Incyte Corporation; Zai Lab Limited; I-Mab Biopharma; and Janssen Biotech, Inc. The company was incorporated in 2000 and is headquartered in Rockville, Maryland.