Adicet Bio (NASDAQ:ACET) vs. Madrigal Pharmaceuticals (NASDAQ:MDGL) Head to Head Review

Madrigal Pharmaceuticals (NASDAQ:MDGL) and Adicet Bio (NASDAQ:ACET) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Valuation and Earnings

This table compares Madrigal Pharmaceuticals and Adicet Bio”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Madrigal Pharmaceuticals	$317.38 million	19.12	-$373.63 million	($18.05)	-15.14
Adicet Bio	$24.99 million	2.38	-$142.66 million	($1.30)	-0.55

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

Profitability

This table compares Madrigal Pharmaceuticals and Adicet Bio’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%
Adicet Bio	N/A	-53.85%	-46.45%

Risk & Volatility

Madrigal Pharmaceuticals has a beta of -0.91, suggesting that its share price is 191% less volatile than the S&P 500. Comparatively, Adicet Bio has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500.

Institutional & Insider Ownership

98.5% of Madrigal Pharmaceuticals shares are held by institutional investors. Comparatively, 83.9% of Adicet Bio shares are held by institutional investors. 21.5% of Madrigal Pharmaceuticals shares are held by insiders. Comparatively, 7.8% of Adicet Bio shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Madrigal Pharmaceuticals and Adicet Bio, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Madrigal Pharmaceuticals	0	1	9	0	2.90
Adicet Bio	0	2	3	0	2.60

Madrigal Pharmaceuticals presently has a consensus target price of $416.33, suggesting a potential upside of 52.31%. Adicet Bio has a consensus target price of $7.50, suggesting a potential upside of 943.55%. Given Adicet Bio’s higher probable upside, analysts plainly believe Adicet Bio is more favorable than Madrigal Pharmaceuticals.

Summary

Adicet Bio beats Madrigal Pharmaceuticals on 7 of the 13 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 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.