United Therapeutics (NASDAQ:UTHR – Get Free Report) and Mirum Pharmaceuticals (NASDAQ:MIRM – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.
Earnings & Valuation
This table compares United Therapeutics and Mirum Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United Therapeutics | $3.18 billion | 7.92 | $1.33 billion | $27.95 | 21.02 |
| Mirum Pharmaceuticals | $521.31 million | 10.01 | -$23.36 million | ($14.55) | -5.53 |
United Therapeutics has higher revenue and earnings than Mirum Pharmaceuticals. Mirum Pharmaceuticals is trading at a lower price-to-earnings ratio than United Therapeutics, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
94.1% of United Therapeutics shares are owned by institutional investors. 8.6% of United Therapeutics 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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations and price targets for United Therapeutics and Mirum Pharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Therapeutics | 1 | 2 | 12 | 0 | 2.73 |
| Mirum Pharmaceuticals | 1 | 0 | 13 | 1 | 2.93 |
United Therapeutics presently has a consensus price target of $650.43, indicating a potential upside of 10.71%. Mirum Pharmaceuticals has a consensus price target of $148.19, indicating a potential upside of 84.34%. Given Mirum Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Mirum Pharmaceuticals is more favorable than United Therapeutics.
Profitability
This table compares United Therapeutics and Mirum Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United Therapeutics | 41.56% | 20.18% | 17.98% |
| Mirum Pharmaceuticals | -139.18% | -36.28% | -8.54% |
Risk & Volatility
United Therapeutics has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Mirum Pharmaceuticals has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.
Summary
United Therapeutics beats Mirum Pharmaceuticals on 8 of the 14 factors compared between the two stocks.
About United Therapeutics
United Therapeutics Corporation, a biotechnology company, engages in the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases in the United States and internationally. The company offers Tyvaso DPI, an inhaled dry powder via pre-filled and single-use cartridges; Tyvaso, an inhaled solution via ultrasonic nebulizer; Remodulin (treprostinil) injection to treat patients with pulmonary arterial hypertension (PAH) to diminish symptoms associated with exercise; Orenitram, a tablet dosage form of treprostinil, to delay disease progression and improve exercise capacity in PAH patients; and Adcirca, an oral PDE-5 inhibitor to enhance the exercise ability in PAH patients. It also markets and sells Unituxin (dinutuximab) injection, a monoclonal antibody for treating high-risk neuroblastoma; and Remunity Pump, which contains a pump and separate controller for Remodulin. In addition, the company engages in developing RemoPro and Ralinepag for the treatment of PAH; Aurora-GT, a gene therapy product to rebuild the blood vessels in the lungs; and Nebulized Tyvaso, for the treatment of idiopathic pulmonary fibrosis, as well as xenografts, which are development-stage organ products. It has licensing and collaboration agreements with DEKA Research & Development Corp. to develop a semi-disposable system for the subcutaneous delivery of treprostinil; MannKind Corporation to develop and license treprostinil inhalation powder and the Dreamboat device; and Arena Pharmaceuticals, Inc. to develop Ralinepag. The company was incorporated in 1996 and is headquartered in Silver Spring, Maryland.
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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