Analyzing NewAmsterdam Pharma (NASDAQ:NAMS) and MacroGenics (NASDAQ:MGNX)

MacroGenics (NASDAQ:MGNX – Get Free Report) and NewAmsterdam Pharma (NASDAQ:NAMS – Get Free Report) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Profitability

This table compares MacroGenics and NewAmsterdam Pharma’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MacroGenics -8.70% -109.26% -18.70%
NewAmsterdam Pharma -3,644.21% -34.81% -31.50%

Insider and Institutional Ownership

96.9% of MacroGenics shares are held by institutional investors. Comparatively, 89.9% of NewAmsterdam Pharma shares are held by institutional investors. 13.6% of MacroGenics shares are held by company insiders. Comparatively, 12.7% of NewAmsterdam Pharma shares are held by company 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.

Risk & Volatility

MacroGenics has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, NewAmsterdam Pharma has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MacroGenics $149.50 million 1.49 -$74.62 million ($0.22) -15.85
NewAmsterdam Pharma $22.50 million 114.22 -$203.82 million ($2.16) -9.95

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

Analyst Recommendations

This is a summary of recent ratings and price targets for MacroGenics and NewAmsterdam Pharma, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MacroGenics 1 3 2 0 2.17
NewAmsterdam Pharma 1 1 9 1 2.83

MacroGenics currently has a consensus price target of $6.33, indicating a potential upside of 81.57%. NewAmsterdam Pharma has a consensus price target of $48.90, indicating a potential upside of 127.46%. Given NewAmsterdam Pharma’s stronger consensus rating and higher possible upside, analysts plainly believe NewAmsterdam Pharma is more favorable than MacroGenics.

Summary

MacroGenics beats NewAmsterdam Pharma on 8 of the 15 factors compared between the two stocks.

About MacroGenics

(Get Free Report)

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.

About NewAmsterdam Pharma

(Get Free Report)

NewAmsterdam Pharma Company N.V., a late-stage biopharmaceutical company, develops therapies to enhance patient care in populations with metabolic disease. It is developing obicetrapib, an oral low-dose cholesteryl ester transfer protein (CETP) inhibitor, that is in various clinical trials as a monotherapy and a combination therapy with ezetimibe for lowering LDL-C for cardiovascular diseases. The company also develops Obicetrapib which is in Phase 2a clinical trial for Alzheimer’s disease. NewAmsterdam Pharma Company N.V. is headquartered in Naarden, the Netherlands.

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