Head-To-Head Analysis: Madrigal Pharmaceuticals (NASDAQ:MDGL) vs. Neoleukin Therapeutics (NASDAQ:NLTX)

Madrigal Pharmaceuticals (NASDAQ:MDGL) and Neoleukin Therapeutics (NASDAQ:NLTX) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Institutional and Insider Ownership

98.5% of Madrigal Pharmaceuticals shares are owned by institutional investors. Comparatively, 52.4% of Neoleukin Therapeutics shares are owned by institutional investors. 22.8% of Madrigal Pharmaceuticals shares are owned by company insiders. Comparatively, 1.6% of Neoleukin Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Madrigal Pharmaceuticals and Neoleukin Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Madrigal Pharmaceuticals	$76.81 million	87.58	-$373.63 million	($25.08)	-12.30
Neoleukin Therapeutics	N/A	N/A	-$57.56 million	($3.11)	-7.10

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

Risk & Volatility

Madrigal Pharmaceuticals has a beta of -0.42, suggesting that its stock price is 142% less volatile than the S&P 500. Comparatively, Neoleukin Therapeutics has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Madrigal Pharmaceuticals and Neoleukin Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Madrigal Pharmaceuticals	1	2	10	0	2.69
Neoleukin Therapeutics	0	0	0	0	0.00

Madrigal Pharmaceuticals presently has a consensus target price of $347.33, suggesting a potential upside of 12.61%. Given Madrigal Pharmaceuticals’ stronger consensus rating and higher possible upside, research analysts clearly believe Madrigal Pharmaceuticals is more favorable than Neoleukin Therapeutics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Madrigal Pharmaceuticals	N/A	-71.78%	-53.25%
Neoleukin Therapeutics	N/A	-37.22%	-30.91%

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.

About Neoleukin Therapeutics

Neoleukin Therapeutics, Inc., a biopharmaceutical company, develops immunotherapies for cancer, inflammation, and autoimmunity disorders using protein design technology. The company's lead product candidate is NL-201, a de novo protein designed to mimic the therapeutic activity of the cytokines interleukin (IL)-2/IL-15 for the treatment of various types of cancer, including renal cell carcinoma and melanoma. The company was formerly known as Aquinox Pharmaceuticals, Inc. and changed its name to Neoleukin Therapeutics, Inc. in August 2019. Neoleukin Therapeutics, Inc. was founded in 2003 and is headquartered in Seattle, Washington.