Head-To-Head Review: Madrigal Pharmaceuticals (NASDAQ:MDGL) and Praxsyn (OTCMKTS:PXYN)

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

Institutional and Insider Ownership

98.5% of Madrigal Pharmaceuticals shares are owned by institutional investors. 21.5% of Madrigal Pharmaceuticals shares are owned 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.

Risk and Volatility

Praxsyn has a beta of 2.18, suggesting that its share price is 118% more volatile than the S&P 500. Comparatively, Madrigal Pharmaceuticals has a beta of -1.01, suggesting that its share price is 201% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Praxsyn and Madrigal Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Praxsyn	0	0	0	0	0.00
Madrigal Pharmaceuticals	2	2	12	1	2.71

Madrigal Pharmaceuticals has a consensus target price of $663.86, suggesting a potential upside of 35.07%. Given Madrigal Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Madrigal Pharmaceuticals is more favorable than Praxsyn.

Valuation & Earnings

This table compares Praxsyn 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
Praxsyn	N/A	N/A	N/A	N/A	N/A
Madrigal Pharmaceuticals	$180.13 million	61.96	-$465.89 million	($13.01)	-37.78

Praxsyn has higher earnings, but lower revenue than Madrigal Pharmaceuticals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Praxsyn	N/A	N/A	N/A
Madrigal Pharmaceuticals	-39.04%	-41.50%	-26.18%

Summary

Madrigal Pharmaceuticals beats Praxsyn on 7 of the 11 factors compared between the two stocks.

About Praxsyn

Praxsyn Corporation, a health care company, provides medical practitioners with medications and services for their patients. It formulates non-narcotic and non-habit forming medications using therapeutic and preventative agents in the forms of transdermal creams, patches, and oral capsules for pain management, erectile dysfunction, and metabolic therapies. Praxsyn Corporation provides its products to patients covered under the California workers’ compensation system, as well as preferred provider contracts. The company was formerly known as The PAWS Pet Company, Inc. and changed its name to Praxsyn Corporation in March 2014. Praxsyn Corporation was founded in 2005 and is headquartered in Las Vegas, Nevada.

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.