Mirum Pharmaceuticals (NASDAQ:MIRM – Get Free Report) and ADC Therapeutics (NYSE:ADCT – Get Free Report) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.
Valuation and Earnings
This table compares Mirum Pharmaceuticals and ADC Therapeutics”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mirum Pharmaceuticals | $521.31 million | 11.74 | -$23.36 million | ($15.47) | -6.06 |
| ADC Therapeutics | $81.36 million | 2.47 | -$142.62 million | ($0.66) | -2.39 |
Mirum Pharmaceuticals has higher revenue and earnings than ADC Therapeutics. Mirum Pharmaceuticals is trading at a lower price-to-earnings ratio than ADC Therapeutics, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
41.1% of ADC Therapeutics shares are owned by institutional investors. 8.3% of Mirum Pharmaceuticals shares are owned by insiders. Comparatively, 5.1% of ADC Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Mirum Pharmaceuticals and ADC Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mirum Pharmaceuticals | -134.75% | -97.25% | -12.59% |
| ADC Therapeutics | -121.77% | N/A | -32.74% |
Analyst Recommendations
This is a breakdown of recent ratings for Mirum Pharmaceuticals and ADC Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mirum Pharmaceuticals | 1 | 0 | 13 | 1 | 2.93 |
| ADC Therapeutics | 1 | 2 | 3 | 0 | 2.33 |
Mirum Pharmaceuticals presently has a consensus price target of $154.94, suggesting a potential upside of 65.32%. ADC Therapeutics has a consensus price target of $5.00, suggesting a potential upside of 217.46%. Given ADC Therapeutics’ higher probable upside, analysts clearly believe ADC Therapeutics is more favorable than Mirum Pharmaceuticals.
Volatility and Risk
Mirum Pharmaceuticals has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, ADC Therapeutics has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500.
Summary
Mirum Pharmaceuticals beats ADC Therapeutics on 8 of the 15 factors compared between the two stocks.
About Mirum Pharmaceuticals
Mirum Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of novel therapies for debilitating rare and orphan diseases. Its lead product candidate is LIVMARLI (maralixibat), an orally administered and minimally absorbed ileal bile acid transporter (IBAT) inhibitor that is approved for the treatment of cholestatic pruritus in patients with Alagille syndrome in the United States and internationally. The company is also involved in the commercialization of Cholbam, a cholic acid capsule, which is approved as treatment for pediatric and adult patients with bile acid synthesis disorders due to single enzyme defects and for adjunctive treatment of patients with peroxisomal disorders, including peroxisome biogenesis disorder-Zellweger spectrum disorder and Smith-Lemli-Opitz syndrome; and Chenodal, a tablet, which is approved for the treatment of radiolucent stones in the gallbladder, and under Phase 3 development for the treatment cerebrotendinous xanthomatosis. In addition, it develops Volixibat, an oral and minimally absorbed agent designed to inhibit IBAT, currently under Phase 2b clinical trial for the treatment of adult patients with cholestatic liver diseases. The company was incorporated in 2018 and is headquartered in Foster City, California.
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.
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