Contrasting Whitehawk Therapeutics (NASDAQ:WHWK) & Merck KGaA (OTCMKTS:MKGAF)

Whitehawk Therapeutics (NASDAQ:WHWKGet Free Report) and Merck KGaA (OTCMKTS:MKGAFGet Free Report) are both manufacturing companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.

Profitability

This table compares Whitehawk Therapeutics and Merck KGaA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Whitehawk Therapeutics N/A -79.63% -74.01%
Merck KGaA 12.60% 10.17% 5.74%

Volatility and Risk

Whitehawk Therapeutics has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Merck KGaA has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Valuation & Earnings

This table compares Whitehawk Therapeutics and Merck KGaA”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Whitehawk Therapeutics $7.14 million 30.61 -$20.60 million ($1.68) -2.63
Merck KGaA $22.72 billion 0.89 $3.06 billion $6.81 23.07

Merck KGaA has higher revenue and earnings than Whitehawk Therapeutics. Whitehawk Therapeutics is trading at a lower price-to-earnings ratio than Merck KGaA, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

52.1% of Whitehawk Therapeutics shares are owned by institutional investors. Comparatively, 0.1% of Merck KGaA shares are owned by institutional investors. 49.9% of Whitehawk Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Whitehawk Therapeutics and Merck KGaA, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Whitehawk Therapeutics 1 1 4 0 2.50
Merck KGaA 0 0 0 0 0.00

Whitehawk Therapeutics presently has a consensus price target of $7.33, indicating a potential upside of 65.91%. Given Whitehawk Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Whitehawk Therapeutics is more favorable than Merck KGaA.

Summary

Merck KGaA beats Whitehawk Therapeutics on 8 of the 14 factors compared between the two stocks.

About Whitehawk Therapeutics

(Get Free Report)

Aadi Bioscience, Inc., a clinical-stage biopharmaceutical company, engages in developing and commercializing precision therapies for genetically defined cancers with alterations in mTOR pathway genes. Its lead drug candidate, FYARRO is a form of sirolimus bound to albumin. Aadi is evaluating FYARRO in cancers with known mTOR pathway activation, including tumor agnostic indications targeting specific genomic alterations that activate the mTOR pathway. The company was incorporated in 2007 and is headquartered in Pacific Palisades, California.

About Merck KGaA

(Get Free Report)

Merck KGaA operates as a science and technology company in Germany. It operates through Life Science, Healthcare, and Electronics segments. The company's Life Science segment offers tools, chemicals, and equipment for academic labs, biotech, and pharmaceutical manufacturers, as well as industrial sector. This segment provides drug manufacturers with process development expertise and technologies, such as continuous bioprocessing; testing kits and services; reagents and services; testing solutions that analyze air, water, and soil; and testing and tools, as well as products that help test nutritional value and identify quality inconsistencies. Its Healthcare segment discovers, develops, manufacturers, and markets prescription drugs and biopharmaceuticals for the treatment of oncology, neurology and immunology, fertility, endocrinology, as well as cardiovascular, diabetes, thyroid disorders, and multiple sclerosis; general medicines; and injection device and disease monitoring software. The Electronics segment supplies materials for the semiconductor and display industries and surface design, such as delivery systems and services, as well as surface solutions, including cosmetics, effect pigments, and functional solutions. In addition, it has in-licensing agreement with Debiopharm International SA for developing and commercializing drug candidates for the treatment of head and neck cancer; Jiangsu Hengrui Pharmaceuticals Co. Ltd. for developing, manufacturing, and commercializing drug candidates for the treatment of metastatic colorectal cancer; and Abbisko Therapeutics Co. Ltd. for developing and commercializing of drug candidates for the treatment of tenosynovial giant cell tumor, as well as license and collaboration agreement with Merck KGaA to discover two targeted protein degraders against critical oncogenic proteins. The company was founded in 1668 and is headquartered in Darmstadt, Germany. Merck KGaA operates as a subsidiary of E. Merck KGaA.

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