NewAmsterdam Pharma (NASDAQ:NAMS) versus ADC Therapeutics (NYSE:ADCT) Critical Review

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

Volatility & Risk

ADC Therapeutics has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500. Comparatively, NewAmsterdam Pharma has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for ADC Therapeutics and NewAmsterdam Pharma, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADC Therapeutics	1	2	3	0	2.33
NewAmsterdam Pharma	1	1	9	1	2.83

ADC Therapeutics presently has a consensus price target of $5.00, indicating a potential upside of 246.02%. NewAmsterdam Pharma has a consensus price target of $48.90, indicating a potential upside of 148.10%. Given ADC Therapeutics’ higher probable upside, equities analysts clearly believe ADC Therapeutics is more favorable than NewAmsterdam Pharma.

Valuation and Earnings

This table compares ADC Therapeutics and NewAmsterdam Pharma”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ADC Therapeutics	$81.36 million	2.27	-$142.62 million	($0.66)	-2.19
NewAmsterdam Pharma	$22.50 million	104.72	-$203.82 million	($2.16)	-9.12

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ADC Therapeutics	-121.77%	N/A	-32.74%
NewAmsterdam Pharma	-3,644.21%	-34.81%	-31.50%

Insider and Institutional Ownership

41.1% of ADC Therapeutics shares are held by institutional investors. Comparatively, 89.9% of NewAmsterdam Pharma shares are held by institutional investors. 5.1% of ADC Therapeutics shares are held by insiders. Comparatively, 12.7% of NewAmsterdam Pharma shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

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

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.

About NewAmsterdam Pharma

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.