Critical Review: ADC Therapeutics (NYSE:ADCT) & Kymera Therapeutics (NASDAQ:KYMR)

Kymera Therapeutics (NASDAQ:KYMR) and ADC Therapeutics (NYSE:ADCT) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Institutional & Insider Ownership

41.1% of ADC Therapeutics shares are held by institutional investors. 16.0% of Kymera Therapeutics shares are held by company insiders. Comparatively, 5.1% of ADC Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kymera Therapeutics	-285.33%	-21.22%	-19.21%
ADC Therapeutics	-121.77%	N/A	-32.74%

Volatility & Risk

Kymera Therapeutics has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500. Comparatively, ADC Therapeutics has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Kymera Therapeutics and ADC Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kymera Therapeutics	1	2	23	1	2.89
ADC Therapeutics	1	2	3	0	2.33

Kymera Therapeutics currently has a consensus price target of $134.68, suggesting a potential upside of 26.07%. ADC Therapeutics has a consensus price target of $5.00, suggesting a potential upside of 241.30%. Given ADC Therapeutics’ higher probable upside, analysts plainly believe ADC Therapeutics is more favorable than Kymera Therapeutics.

Earnings and Valuation

This table compares Kymera Therapeutics and ADC Therapeutics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kymera Therapeutics	$39.21 million	226.55	-$311.35 million	($3.24)	-32.97
ADC Therapeutics	$81.36 million	2.30	-$142.62 million	($0.66)	-2.22

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

About Kymera Therapeutics

Kymera Therapeutics, Inc., a biopharmaceutical company, focuses on discovering and developing novel small molecule therapeutics that selectively degrade disease-causing proteins by harnessing the body's own natural protein degradation system. It engages in developing IRAK4 program, which is in Phase II clinical trial for the treatment of immunology-inflammation diseases, including hidradenitis suppurativa, atopic dermatitis; STAT3 program for the treatment of hematologic malignancies and solid tumors, as well as autoimmune diseases and fibrosis; and MDM2 program to treat hematological malignancies and solid tumors. The company develops STAT6, a Type 2 inflammation in allergic diseases; and TYK2, a treatment for inflammatory bowel disease, psoriasis, psoriatic arthritis, and lupus. The company was incorporated in 2015 and is headquartered in Watertown, Massachusetts.

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.