Analyzing ADC Therapeutics (NYSE:ADCT) and HOOKIPA Pharma (NASDAQ:HOOK)

HOOKIPA Pharma (NASDAQ:HOOK) and ADC Therapeutics (NYSE:ADCT) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.

Valuation and Earnings

This table compares HOOKIPA Pharma and ADC Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HOOKIPA Pharma	$9.35 million	1.57	-$43.50 million	($3.54)	-0.34
ADC Therapeutics	$81.36 million	5.09	-$142.62 million	($1.05)	-3.10

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

Profitability

This table compares HOOKIPA Pharma and ADC Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HOOKIPA Pharma	-785.66%	-120.09%	-77.14%
ADC Therapeutics	-173.02%	N/A	-44.70%

Risk and Volatility

HOOKIPA Pharma has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, ADC Therapeutics has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500.

Institutional & Insider Ownership

63.9% of HOOKIPA Pharma shares are held by institutional investors. Comparatively, 41.1% of ADC Therapeutics shares are held by institutional investors. 3.3% of HOOKIPA Pharma shares are held by insiders. Comparatively, 5.4% of ADC Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for HOOKIPA Pharma and ADC Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HOOKIPA Pharma	0	0	0	0	0.00
ADC Therapeutics	1	0	3	0	2.50

ADC Therapeutics has a consensus target price of $8.00, indicating a potential upside of 145.55%. Given ADC Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe ADC Therapeutics is more favorable than HOOKIPA Pharma.

Summary

ADC Therapeutics beats HOOKIPA Pharma on 11 of the 14 factors compared between the two stocks.

About HOOKIPA Pharma

HOOKIPA Pharma Inc., a clinical-stage biopharmaceutical company, develops immunotherapeutics targeting infectious diseases and cancers based on its proprietary arenavirus platform. The company's lead infectious disease product candidate is HB-101, which is in a randomized double-blinded Phase 2 clinical trial in cytomegalovirus-negative patients awaiting kidney transplantation from cytomegalovirus-positive donors. Its lead oncology product candidates are HB-201 and HB-202 that are in preclinical studies for the treatment of human papillomavirus-positive cancers. The company has a collaboration with Gilead Sciences, Inc. to develop arenavirus based therapeutics to treat hepatitis B virus and human immunodeficiency virus infections. HOOKIPA Pharma Inc. was founded in 2011 and is headquartered in New York, New York.

About ADC Therapeutics

ADC Therapeutics SA focuses on advancing its proprietary antibody drug conjugate (ADC) technology platform to transform the treatment paradigm for patients with hematologic malignancies and solid tumors. Its flagship product is ZYNLONTA, a CD19-directed ADC, received accelerated approval from the U.S. Food and Drug Administration and conditional approval from the European Commission for the treatment of relapsed or refractory diffuse large B-cell lymphoma (DLBCL) after two or more lines of systemic therapy. The company is also seeking to continue expanding ZYNLONTA into international markets and into earlier lines of DLBCL and indolent lymphomas, including follicular lymphoma (FL) and marginal zone lymphoma (MZL) as a single agent and in combination through its LOTIS-5 confirmatory Phase 3 clinical trial and LOTIS-7 Phase 1b clinical trial, as well as through investigator-initiated trials (IITs). In addition, it is investigating a CD-22 targeted compound, ADCT-602 that is in a Phase 1/2 investigator-initiated study in relapsed or refractory B-cell acute lymphoblastic leukemia. Further, its clinical-stage pipeline consists of ADCT-601 (mipasetamab uzoptirine) targeting AXL as a single agent and/or in combination in sarcoma, pancreatic, and NSCLC, as well as pre-clinical stage pipeline includes a portfolio of next generation investigational ADCs targeting Claudin-6, NaPi2b, PSMA, and other undisclosed targets. The company was incorporated in 2011 and is headquartered in Epalinges, Switzerland.