Madrigal Pharmaceuticals (NASDAQ: MDGL) and China Biologic Products (NASDAQ:CBPO) are both healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.
Institutional & Insider Ownership
22.5% of Madrigal Pharmaceuticals shares are held by institutional investors. Comparatively, 71.1% of China Biologic Products shares are held by institutional investors. 66.4% of Madrigal Pharmaceuticals shares are held by company insiders. Comparatively, 2.7% of China Biologic Products shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of current recommendations for Madrigal Pharmaceuticals and China Biologic Products, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Biologic Products||0||1||2||0||2.67|
Madrigal Pharmaceuticals currently has a consensus target price of $63.33, indicating a potential upside of 31.62%. China Biologic Products has a consensus target price of $137.50, indicating a potential upside of 61.96%. Given China Biologic Products’ higher probable upside, analysts clearly believe China Biologic Products is more favorable than Madrigal Pharmaceuticals.
This table compares Madrigal Pharmaceuticals and China Biologic Products’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Biologic Products||31.29%||21.49%||18.58%|
Earnings and Valuation
This table compares Madrigal Pharmaceuticals and China Biologic Products’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Madrigal Pharmaceuticals||N/A||N/A||-$26.38 million||($2.46)||-19.56|
|China Biologic Products||$341.17 million||6.87||$104.77 million||$3.97||21.39|
China Biologic Products has higher revenue and earnings than Madrigal Pharmaceuticals. Madrigal Pharmaceuticals is trading at a lower price-to-earnings ratio than China Biologic Products, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Madrigal Pharmaceuticals has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, China Biologic Products has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.
China Biologic Products beats Madrigal Pharmaceuticals on 9 of the 12 factors compared between the two stocks.
About Madrigal Pharmaceuticals
Madrigal Pharmaceuticals, Inc., formerly Synta Pharmaceuticals Corp., is a clinical-stage biopharmaceutical company. The Company focuses on the development and commercialization of therapeutic candidates for the treatment of cardiovascular-metabolic diseases and nonalcoholic steatohepatitis (NASH). The Company’s lead product, MGL-3196, is a Phase II-ready once-daily, oral, liver-directed selective thyroid hormone receptor-b (THR-b) agonist for the treatment of NASH, and heterozygous and homozygous familial hypercholesterolemia (FH). Its product pipeline also includes MGL-3745, which is used in the treatment of NASH and FH. MGL-3196 has completed Phase I single and multiple dose trials in healthy volunteers. MGL-3196 is being developed for dyslipidemia/hypercholesterolemia to lower low-density lipoproteins cholesterol, triglyceride levels and lipoprotein(a). MGL-3196 also reduces triglycerides in the plasma and liver by increasing fat metabolism and shows an anti-diabetic action.
About China Biologic Products
China Biologic Products Holdings, Inc. is a biopharmaceutical company. The Company is principally engaged in the research, development, manufacturing and sales of human plasma-based biopharmaceutical products in China. It operates through the manufacture and sales of human plasma products segment. China Biologic has a product portfolio with over 20 various dosage forms of plasma products and other biopharmaceutical products across nine categories.The Company’s products include human albumin, human immunoglobulin, immunoglobulin for intravenous injection (IVIG), human hepatitis B immunoglobulin, human rabies immunoglobulin, human tetanus immunoglobulin, placenta polypeptide, Factor VIII and human prothrombin complex concentrate (PCC).
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