Reviewing ADC Therapeutics (NYSE:ADCT) and MediWound (NASDAQ:MDWD)

ADC Therapeutics (NYSE:ADCT) and MediWound (NASDAQ:MDWD) are both small-cap healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Risk and Volatility

ADC Therapeutics has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500. Comparatively, MediWound has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500.

Earnings and Valuation

This table compares ADC Therapeutics and MediWound”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ADC Therapeutics	$81.36 million	2.50	-$142.62 million	($0.66)	-2.42
MediWound	$16.96 million	9.23	-$23.88 million	($1.80)	-6.77

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

Profitability

This table compares ADC Therapeutics and MediWound’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ADC Therapeutics	-121.77%	N/A	-32.74%
MediWound	-170.10%	-47.24%	-24.27%

Insider & Institutional Ownership

41.1% of ADC Therapeutics shares are owned by institutional investors. Comparatively, 46.8% of MediWound shares are owned by institutional investors. 5.1% of ADC Therapeutics shares are owned by company insiders. Comparatively, 9.2% of MediWound shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for ADC Therapeutics and MediWound, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADC Therapeutics	1	2	3	0	2.33
MediWound	1	1	4	0	2.50

ADC Therapeutics currently has a consensus price target of $5.00, suggesting a potential upside of 213.48%. MediWound has a consensus price target of $33.00, suggesting a potential upside of 170.94%. Given ADC Therapeutics’ higher probable upside, equities research analysts clearly believe ADC Therapeutics is more favorable than MediWound.

Summary

MediWound beats ADC Therapeutics on 7 of the 13 factors compared between the two stocks.

About ADC Therapeutics

ADC Therapeutics SA focuses on advancing its proprietary antibody drug conjugate (ADC) technology platform to transform the treatment paradigm for patients with hematologic malignancies and solid tumors. Its flagship product is ZYNLONTA, a CD19-directed ADC, received accelerated approval from the U.S. Food and Drug Administration and conditional approval from the European Commission for the treatment of relapsed or refractory diffuse large B-cell lymphoma (DLBCL) after two or more lines of systemic therapy. The company is also seeking to continue expanding ZYNLONTA into international markets and into earlier lines of DLBCL and indolent lymphomas, including follicular lymphoma (FL) and marginal zone lymphoma (MZL) as a single agent and in combination through its LOTIS-5 confirmatory Phase 3 clinical trial and LOTIS-7 Phase 1b clinical trial, as well as through investigator-initiated trials (IITs). In addition, it is investigating a CD-22 targeted compound, ADCT-602 that is in a Phase 1/2 investigator-initiated study in relapsed or refractory B-cell acute lymphoblastic leukemia. Further, its clinical-stage pipeline consists of ADCT-601 (mipasetamab uzoptirine) targeting AXL as a single agent and/or in combination in sarcoma, pancreatic, and NSCLC, as well as pre-clinical stage pipeline includes a portfolio of next generation investigational ADCs targeting Claudin-6, NaPi2b, PSMA, and other undisclosed targets. The company was incorporated in 2011 and is headquartered in Epalinges, Switzerland.

About MediWound

MediWound Ltd., a biopharmaceutical company, develops, manufactures, and commercializes novel, bio-therapeutic, and non-surgical solutions for tissue repair and regeneration in United States, Europe, and internationally. It markets NexoBrid, a biopharmaceutical product for the removal of eschar, a dead or damaged tissue in adults with deep partial- and full-thickness thermal burns to burn centers and hospitals burn units. The company also develops EscharEx, which has completed Phase II clinical trials for the debridement of chronic and other hard-to-heal wounds; and MW005, which is in phase I/II for the treatment of low-risk basal cell carcinoma. MediWound Ltd. was incorporated in 2000 and is headquartered in Yavne, Israel.