Xilio Therapeutics (NASDAQ:XLO – Get Free Report) and Madrigal Pharmaceuticals (NASDAQ:MDGL – Get Free Report) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.
Analyst Ratings
This is a summary of recent recommendations for Xilio Therapeutics and Madrigal Pharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Xilio Therapeutics | 0 | 0 | 1 | 0 | 3.00 |
| Madrigal Pharmaceuticals | 1 | 1 | 7 | 1 | 2.80 |
Xilio Therapeutics currently has a consensus price target of $4.00, indicating a potential upside of 399.88%. Madrigal Pharmaceuticals has a consensus price target of $378.44, indicating a potential upside of 8.64%. Given Xilio Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Xilio Therapeutics is more favorable than Madrigal Pharmaceuticals.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Xilio Therapeutics | $6.34 million | 6.53 | -$76.40 million | ($1.28) | -0.63 |
| Madrigal Pharmaceuticals | $180.13 million | 42.70 | -$373.63 million | ($22.11) | -15.76 |
Xilio Therapeutics has higher earnings, but lower revenue than Madrigal Pharmaceuticals. Madrigal Pharmaceuticals is trading at a lower price-to-earnings ratio than Xilio Therapeutics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Xilio Therapeutics and Madrigal Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Xilio Therapeutics | N/A | -211.50% | -80.31% |
| Madrigal Pharmaceuticals | N/A | -71.78% | -53.25% |
Insider & Institutional Ownership
54.3% of Xilio Therapeutics shares are held by institutional investors. Comparatively, 98.5% of Madrigal Pharmaceuticals shares are held by institutional investors. 5.2% of Xilio Therapeutics shares are held by insiders. Comparatively, 22.8% of Madrigal Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk and Volatility
Xilio Therapeutics has a beta of -0.38, indicating that its stock price is 138% less volatile than the S&P 500. Comparatively, Madrigal Pharmaceuticals has a beta of -0.41, indicating that its stock price is 141% less volatile than the S&P 500.
Summary
Madrigal Pharmaceuticals beats Xilio Therapeutics on 8 of the 14 factors compared between the two stocks.
About Xilio Therapeutics
Xilio Therapeutics, Inc., a clinical-stage biotechnology company, engages in the discovery and development of tumor-activated immuno-oncology therapies. The company’s checkpoint inhibitor program includes XTX101, an investigational Fc-enhanced, tumor-activated anti-CTLA-4 mAb that is in Phase 2 clinical trial for patients with advanced solid tumors. It also develops cytokine programs, which comprises XTX202, a tumor-activated beta-gamma biased IL-2, currently under Phase 2 clinal trials; and XTX301, an investigational tumor-activated, engineered IL-12 molecule, currently under Phase 1 studies. The company was founded in 2016 and is headquartered in Waltham, Massachusetts.
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.
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