Natera (NASDAQ:NTRA – Get Free Report) and Mirum Pharmaceuticals (NASDAQ:MIRM – Get Free Report) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.
Risk & Volatility
Natera has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, Mirum Pharmaceuticals has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.
Insider & Institutional Ownership
99.9% of Natera shares are owned by institutional investors. 5.0% of Natera shares are owned by company insiders. Comparatively, 8.3% of Mirum Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Natera | 1 | 4 | 15 | 2 | 2.82 |
| Mirum Pharmaceuticals | 1 | 0 | 13 | 1 | 2.93 |
Natera currently has a consensus price target of $319.38, suggesting a potential downside of 2.53%. Mirum Pharmaceuticals has a consensus price target of $137.31, suggesting a potential upside of 36.45%. Given Mirum Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Mirum Pharmaceuticals is more favorable than Natera.
Profitability
This table compares Natera and Mirum Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Natera | -7.11% | -11.38% | -7.87% |
| Mirum Pharmaceuticals | -139.18% | -36.28% | -8.54% |
Earnings and Valuation
This table compares Natera and Mirum Pharmaceuticals”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Natera | $2.31 billion | 20.48 | -$208.16 million | ($1.36) | -240.93 |
| Mirum Pharmaceuticals | $521.31 million | 12.53 | -$23.36 million | ($14.55) | -6.92 |
Mirum Pharmaceuticals has lower revenue, but higher earnings than Natera. Natera is trading at a lower price-to-earnings ratio than Mirum Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Summary
Natera beats Mirum Pharmaceuticals on 10 of the 15 factors compared between the two stocks.
About Natera
Natera, Inc., a diagnostics company, develops and commercializes molecular testing services worldwide. Its products include Panorama, a non-invasive prenatal test that screens for chromosomal abnormalities of a fetus, as well as in twin pregnancies; Horizon carrier screening test for individuals and couples determine if they are carriers of genetic variations that cause certain genetic conditions; Vistara single-gene NIPT screens for 25 single-gene disorders that cause severe skeletal, cardiac, and neurological conditions; Spectrum, preimplantation genetic tests for couples undergoing IVF; Anora that analyzes miscarriage tissue from women; Empower, a hereditary cancer screening test; and non-invasive prenatal paternity product, which allows a couple to establish paternity without waiting for the child to be born. The company also provides Signatera, a ctDNA blood test for molecular residual disease assessment and surveillance of disease recurrence in patients previously diagnosed with cancer; Altera, a tissue based comprehensive genomic profiling test; Prospera to assess active rejection in patients who have undergone kidney, heart, and lung transplantation; and Renasight, a kidney gene panel test. In addition, it offers Constellation, a cloud-based software product that enables laboratory customers to gain access through the cloud to the company's algorithms and bioinformatics to validate and launch tests. The company offers products through its direct sales force, as well as through a network of laboratory and distribution partners. It has a partnership agreement with BGI Genomics Co., Ltd. to develop, manufacture, and commercialize NGS-based genetic testing assays; and Foundation Medicine, Inc. to develop and commercialize personalized circulating tumor DNA monitoring assays. The company was founded in 2003 and is headquartered in Austin, Texas.
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.
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