Financial Analysis: Madrigal Pharmaceuticals (NASDAQ:MDGL) & Cryoport (NASDAQ:CYRX)

Madrigal Pharmaceuticals (NASDAQ:MDGL) and Cryoport (NASDAQ:CYRX) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Risk & Volatility

Madrigal Pharmaceuticals has a beta of -0.46, meaning that its stock price is 146% less volatile than the S&P 500. Comparatively, Cryoport has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500.

Profitability

This table compares Madrigal Pharmaceuticals and Cryoport’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Madrigal Pharmaceuticals	N/A	-71.78%	-53.25%
Cryoport	-70.08%	-13.35%	-6.43%

Insider and Institutional Ownership

98.5% of Madrigal Pharmaceuticals shares are owned by institutional investors. Comparatively, 92.9% of Cryoport shares are owned by institutional investors. 22.8% of Madrigal Pharmaceuticals shares are owned by company insiders. Comparatively, 10.1% of Cryoport shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Madrigal Pharmaceuticals and Cryoport, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Madrigal Pharmaceuticals	1	2	10	0	2.69
Cryoport	0	3	3	0	2.50

Madrigal Pharmaceuticals currently has a consensus target price of $347.33, indicating a potential upside of 10.21%. Cryoport has a consensus target price of $12.50, indicating a potential upside of 62.97%. Given Cryoport’s higher probable upside, analysts clearly believe Cryoport is more favorable than Madrigal Pharmaceuticals.

Valuation & Earnings

This table compares Madrigal Pharmaceuticals and Cryoport”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Madrigal Pharmaceuticals	$76.81 million	89.48	-$373.63 million	($25.08)	-12.57
Cryoport	$233.26 million	1.63	-$99.59 million	($3.38)	-2.27

Cryoport has higher revenue and earnings than Madrigal Pharmaceuticals. Madrigal Pharmaceuticals is trading at a lower price-to-earnings ratio than Cryoport, indicating that it is currently the more affordable of the two stocks.

Summary

Cryoport beats Madrigal Pharmaceuticals on 8 of the 14 factors compared between the two stocks.

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.

About Cryoport

Cryoport, Inc. provides temperature-controlled supply chain solutions in biopharma/pharma, animal health, and human reproductive medicine markets in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers Cryoport Express Shippers; Cryoport ELITE -80°C Gene Therapy Shipper; Cryoport ELITE Cryosphere Shipper; Cryoport consulting services, including physical, thermal, and shipping qualifications of shipping systems and/or packaging to developing custom packaging solutions; and Cryoport bioservices, such as controlled temperature storage, fulfilment, kit production, secondary packaging, labelling of therapeutic products, and GMP raw materials storage services. It also provides CRYOGENE, an unparalleled solution that offers pre-clinical temperature-controlled biological materials management services comprising specimen storage, processing, collection, and retrieval; CRYOPD, a temperature-controlled logistics solution, which include temperature-controlled packaging and transport solutions from cryogenic temperature to controlled ambient; and IntegriCell services that comprise apheresis/leukapheresis collection, Cryoshuttle transportation, cryo-process optimization and processing services. In addition, the company offers MVE Biological Solutions' Fusion cryogenic system, a self-sustaining cryogenic freezer; MVE Biological Solutions' Vario cryogenic system, a cryogenic freezer system that supports temperatures between -20°C and -150°C; Cryoport Cryoshuttle provides clients with dedicated local transportation support; and Tec4Med. Further, it provides biological specimen cryopreservation storage and maintenance; archiving, monitoring, tracking, receipt, and delivery of samples; frozen biological specimens transportation; and incoming and outgoing biological specimens management; and short-term logistics and engineering consulting services. Cryoport, Inc. was founded in 1999 and is headquartered in Brentwood, Tennessee.