Head-To-Head Review: Madrigal Pharmaceuticals (NASDAQ:MDGL) & Krystal Biotech (NASDAQ:KRYS)

Madrigal Pharmaceuticals (NASDAQ:MDGL) and Krystal Biotech (NASDAQ:KRYS) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Madrigal Pharmaceuticals	$958.40 million	11.08	-$288.28 million	($12.89)	-35.67
Krystal Biotech	$389.13 million	25.10	$204.83 million	$7.98	41.35

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

Insider & Institutional Ownership

98.5% of Madrigal Pharmaceuticals shares are owned by institutional investors. Comparatively, 86.3% of Krystal Biotech shares are owned by institutional investors. 17.6% of Madrigal Pharmaceuticals shares are owned by company insiders. Comparatively, 13.1% of Krystal Biotech shares are owned by company 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.

Profitability

This table compares Madrigal Pharmaceuticals and Krystal Biotech’s 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%
Krystal Biotech	54.82%	19.34%	17.65%

Risk and Volatility

Madrigal Pharmaceuticals has a beta of -1.04, meaning that its share price is 204% less volatile than the S&P 500. Comparatively, Krystal Biotech has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Madrigal Pharmaceuticals and Krystal Biotech, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Madrigal Pharmaceuticals	1	2	15	0	2.78
Krystal Biotech	0	2	10	2	3.00

Madrigal Pharmaceuticals presently has a consensus target price of $699.20, indicating a potential upside of 52.06%. Krystal Biotech has a consensus target price of $377.20, indicating a potential upside of 14.30%. Given Madrigal Pharmaceuticals’ higher possible upside, analysts plainly believe Madrigal Pharmaceuticals is more favorable than Krystal Biotech.

Summary

Krystal Biotech beats Madrigal Pharmaceuticals on 9 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 Krystal Biotech

Krystal Biotech, Inc., a commercial-stage biotechnology company, discovers, develops, and commercializes genetic medicines for patients with rare diseases in the United States. It commercializes VYJUVEK (beremagene geperpavec-svdt, or B-VEC) for the treatment of dystrophic epidermolysis bullosa (DEB). The company also develops KB105, which is in Phase 1/2 clinical trials for treating patients with deficient autosomal recessive congenital ichthyosis; KB104 for treating netherton syndrome; KB407 that is in Phase 1 clinical trials for treating cystic fibrosis; KB707 that is in Phase 1 clinical trials for the treatment of anti-PD-1 relapsed/refractory; KB408, which is in Phase 1 clinical trials for treating Alpha-1 antitrypsin deficiency; and KB301 that is in Phase 2 clinical trials for treating aesthetic skin conditions, as well as in open label study with ophthalmic B-VEC for treating for ocular complications of deb. Krystal Biotech, Inc. was founded in 2016 and is headquartered in Pittsburgh, Pennsylvania.