Madrigal Pharmaceuticals (NASDAQ:MDGL) versus Metagenomi (NASDAQ:MGX) Head-To-Head Comparison

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

Volatility and Risk

Metagenomi has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, Madrigal Pharmaceuticals has a beta of -1.04, meaning that its share price is 204% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Metagenomi	-287.06%	-43.19%	-31.06%
Madrigal Pharmaceuticals	-39.04%	-41.50%	-26.18%

Analyst Ratings

This is a summary of recent ratings for Metagenomi and Madrigal Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Metagenomi	1	0	3	1	2.80
Madrigal Pharmaceuticals	1	1	12	1	2.87

Metagenomi presently has a consensus price target of $10.00, indicating a potential upside of 525.00%. Madrigal Pharmaceuticals has a consensus price target of $624.08, indicating a potential upside of 6.91%. Given Metagenomi’s higher probable upside, analysts plainly believe Metagenomi is more favorable than Madrigal Pharmaceuticals.

Valuation & Earnings

This table compares Metagenomi and Madrigal Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Metagenomi	$52.29 million	1.15	-$78.06 million	($2.40)	-0.67
Madrigal Pharmaceuticals	$180.13 million	73.59	-$465.89 million	($13.01)	-44.87

Metagenomi has higher earnings, but lower revenue than Madrigal Pharmaceuticals. Madrigal Pharmaceuticals is trading at a lower price-to-earnings ratio than Metagenomi, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

98.5% of Madrigal Pharmaceuticals shares are held by institutional investors. 17.8% of Metagenomi shares are held by company insiders. Comparatively, 21.5% of Madrigal Pharmaceuticals shares are held 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.

Summary

Madrigal Pharmaceuticals beats Metagenomi on 9 of the 14 factors compared between the two stocks.

About Metagenomi

Metagenomi, Inc., a genetic medicines company, develops therapeutics for patients using metagenomics-derived genome editing toolbox in the United States. The company's genome editing toolbox includes programmable nucleases, base editors, and RNA and DNA-mediated integration systems, such as prime editing systems and clustered regularly interspaced short palindromic repeat-associated transposases. It has a strategic collaboration and license agreement with ModernaTX, Inc. focusing on new genome editing system for in vivo human therapeutic applications; a development, option, and license agreement with Affini-T Therapeutics, Inc. to develop and commercialize gene edited T-cell receptor-based therapeutic products in the field of treatment, prevention, or diagnosis of human cancer; and a collaboration and license agreement with Ionis Pharmaceuticals, Inc. to research, develop, and commercialize investigational medicines using genome editing technologies. The company was incorporated in 2016 and is based in Emeryville, California.

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.