Incyte (NASDAQ:INCY – Get Free Report) and Madrigal Pharmaceuticals (NASDAQ:MDGL – Get Free Report) are both large-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.
Valuation & Earnings
This table compares Incyte and Madrigal Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Incyte | $5.14 billion | 4.60 | $1.29 billion | $7.85 | 14.85 |
| Madrigal Pharmaceuticals | $958.40 million | 11.27 | -$288.28 million | ($12.89) | -36.27 |
Incyte has higher revenue and earnings than Madrigal Pharmaceuticals. Madrigal Pharmaceuticals is trading at a lower price-to-earnings ratio than Incyte, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Incyte has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Madrigal Pharmaceuticals has a beta of -1.04, meaning that its stock price is 204% less volatile than the S&P 500.
Insider & Institutional Ownership
97.0% of Incyte shares are owned by institutional investors. Comparatively, 98.5% of Madrigal Pharmaceuticals shares are owned by institutional investors. 16.2% of Incyte shares are owned by company insiders. Comparatively, 17.6% of Madrigal Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Incyte and Madrigal Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Incyte | 27.71% | 29.93% | 22.88% |
| Madrigal Pharmaceuticals | -25.32% | -56.65% | -25.53% |
Analyst Recommendations
This is a summary of recent ratings for Incyte and Madrigal Pharmaceuticals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Incyte | 1 | 12 | 11 | 1 | 2.48 |
| Madrigal Pharmaceuticals | 1 | 2 | 15 | 0 | 2.78 |
Incyte presently has a consensus price target of $129.33, indicating a potential upside of 10.91%. Madrigal Pharmaceuticals has a consensus price target of $699.20, indicating a potential upside of 49.55%. Given Madrigal Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Madrigal Pharmaceuticals is more favorable than Incyte.
Summary
Incyte beats Madrigal Pharmaceuticals on 9 of the 15 factors compared between the two stocks.
About Incyte
Incyte Corporation, a biopharmaceutical company, engages in the discovery, development, and commercialization of therapeutics for hematology/oncology, and inflammation and autoimmunity areas in the United States and internationally. The company offers JAKAFI (ruxolitinib) for treatment of intermediate or high-risk myelofibrosis, polycythemia vera, and steroid-refractory acute graft-versus-host disease; MONJUVI (tafasitamab-cxix)/MINJUVI (tafasitamab) for relapsed or refractory diffuse large B-cell lymphoma; PEMAZYRE (pemigatinib), a fibroblast growth factor receptor kinase inhibitor that act as oncogenic drivers in liquid and solid tumor types; ICLUSIG (ponatinib) to treat chronic myeloid leukemia and Philadelphia-chromosome positive acute lymphoblastic leukemia; and ZYNYZ (retifanlimab-dlwr) to treat adults with metastatic or recurrent locally advanced Merkel cell carcinoma, as well as OPZELURA cream for treatment of atopic dermatitis. Its clinical stage products include retifanlimab under Phase 3 clinical trials for squamous cell carcinoma of the anal canal and non-small cell lung cancer; axatilimab, an anti-CSF-1R monoclonal antibody under Phase 2 that is being developed as a therapy for patients with chronic GVHD; INCA033989 to inhibit oncogenesis; INCB160058, which is being developed as a disease-modifying therapeutic; and INCB99280 and INCB99318 for the treatment solid tumors. The company also develops INCB123667, INCA32459, and INCA33890, as well as Ruxolitinib cream, Povorcitinib, and INCA034460. It has collaboration out-license agreements with Novartis and Lilly; in-license agreements with Agenus, Merus, MacroGenics, and Syndax; and collaboration and license agreement with China Medical System Holdings Limited for the development and commercialization of povorcitinib. The company sells its products to specialty, retail, and hospital pharmacies, distributors, and wholesalers. The company was formerly known as Incyte Genomics Inc and changed its name to Incyte Corporation in March 2003. Incyte Corporation was incorporated in 1991 and is headquartered in Wilmington, Delaware.
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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