Reviewing Adicet Bio (NASDAQ:ACET) and HUTCHMED (NASDAQ:HCM)

HUTCHMED (NASDAQ:HCM) and Adicet Bio (NASDAQ:ACET) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Profitability

This table compares HUTCHMED and Adicet Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HUTCHMED	N/A	N/A	N/A
Adicet Bio	N/A	-53.85%	-46.45%

Risk & Volatility

HUTCHMED has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Adicet Bio has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for HUTCHMED and Adicet Bio, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HUTCHMED	0	1	0	0	2.00
Adicet Bio	0	2	3	0	2.60

HUTCHMED currently has a consensus target price of $19.00, suggesting a potential upside of 30.14%. Adicet Bio has a consensus target price of $7.50, suggesting a potential upside of 1,429.36%. Given Adicet Bio’s stronger consensus rating and higher possible upside, analysts plainly believe Adicet Bio is more favorable than HUTCHMED.

Institutional & Insider Ownership

8.8% of HUTCHMED shares are held by institutional investors. Comparatively, 83.9% of Adicet Bio shares are held by institutional investors. 3.6% of HUTCHMED shares are held by insiders. Comparatively, 19.1% of Adicet Bio shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares HUTCHMED and Adicet Bio”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HUTCHMED	$630.20 million	4.04	$100.78 million	N/A	N/A
Adicet Bio	$24.99 million	1.62	-$142.66 million	($1.34)	-0.37

HUTCHMED has higher revenue and earnings than Adicet Bio.

Summary

Adicet Bio beats HUTCHMED on 6 of the 11 factors compared between the two stocks.

About HUTCHMED

HUTCHMED (China) Ltd. is a holding company, which engages in the research and development, manufacture, and sale of pharmaceuticals and health-oriented consumer products. It operates through the Oncology/Immunology and Other Ventures segments. The Oncology/Immunology segment includes the discovery, development, and commercialization of targeted therapies and immunotherapies for the treatment of cancer and immunological diseases. The Other Ventures segment involves the other commercial businesses which include the sales, marketing, manufacture, and distribution of prescription drugs and healthcare products. The company was founded on December 18, 2000 and is headquartered in Hong Kong.

About Adicet Bio

Adicet Bio, Inc., a clinical stage biotechnology company, discovers and develops allogeneic gamma delta T cell therapies for autoimmune diseases and cancer. The company offers gamma delta T cells engineered with chimeric antigen receptors (CARs) to facilitate durable activity in patients. Its lead product candidate is ADI-001, an allogeneic gamma delta T cell therapy expressing a CAR targeting CD20, which is in Phase I clinical trial for the treatment of autoimmune diseases and relapsed or refractory aggressive B cell non-Hodgkin's lymphoma. The company is also developing ADI-270, an armored gamma delta CAR T cell product candidate targeting renal cell carcinoma for treating other CD70+ solid tumor and hematological malignancies indications. The company was founded in 2014 and is based in Boston, Massachusetts.