Analyzing Janux Therapeutics (NASDAQ:JANX) and Madrigal Pharmaceuticals (NASDAQ:MDGL)

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

Risk & Volatility

Madrigal Pharmaceuticals has a beta of -0.98, meaning that its stock price is 198% less volatile than the S&P 500. Comparatively, Janux Therapeutics has a beta of 2.53, meaning that its stock price is 153% more volatile than the S&P 500.

Profitability

This table compares Madrigal Pharmaceuticals and Janux Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Madrigal Pharmaceuticals	-25.32%	-56.65%	-25.53%
Janux Therapeutics	N/A	-11.89%	-11.13%

Valuation & Earnings

This table compares Madrigal Pharmaceuticals and Janux Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Madrigal Pharmaceuticals	$958.40 million	13.08	-$288.28 million	($12.89)	-42.10
Janux Therapeutics	$10.00 million	121.06	-$113.62 million	($1.64)	-12.07

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

Analyst Recommendations

This is a summary of current ratings and price targets for Madrigal Pharmaceuticals and Janux Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Madrigal Pharmaceuticals	1	2	15	0	2.78
Janux Therapeutics	2	2	10	1	2.67

Madrigal Pharmaceuticals currently has a consensus price target of $699.64, suggesting a potential upside of 28.94%. Janux Therapeutics has a consensus price target of $36.46, suggesting a potential upside of 84.15%. Given Janux Therapeutics’ higher probable upside, analysts plainly believe Janux Therapeutics is more favorable than Madrigal Pharmaceuticals.

Insider & Institutional Ownership

98.5% of Madrigal Pharmaceuticals shares are owned by institutional investors. Comparatively, 75.4% of Janux Therapeutics shares are owned by institutional investors. 17.6% of Madrigal Pharmaceuticals shares are owned by company insiders. Comparatively, 7.9% of Janux Therapeutics shares are owned 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.

Summary

Janux Therapeutics beats Madrigal Pharmaceuticals on 10 of the 15 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 Janux Therapeutics

Janux Therapeutics, Inc., a clinical stage biopharmaceutical company, develops immunotherapies based on Tumor Activated T Cell Engagers (TRACTr) and Tumor Activated Immunomodulators (TRACIr) platforms technology to treat patients suffering from cancer. The company's clinical candidates comprise JANX007, a prostate-specific membrane antigen or PSMA-TRACTr, which is in Phase 1 clinical trial in adults for the treatment of metastatic castration-resistant prostate cancer (mCRPC) and the vasculature of other tumors; and JANX008, an epidermal growth factor receptor or EGFR-TRACTr that is in Phase 1 clinical trial for the treatment of multiple solid cancers, including colorectal cancer, squamous cell carcinoma of the head and neck, non-small cell lung cancer, and renal cell carcinoma. Its development pipeline also consists of discovery stage products. The company has strategic research collaboration agreement with Merck Sharp & Dohme Corp. to develop TRACTr product candidates. Janux Therapeutics, Inc. was incorporated in 2017 and is headquartered in San Diego, California.