Financial Review: ADC Therapeutics (NYSE:ADCT) vs. Mirum Pharmaceuticals (NASDAQ:MIRM)

ADC Therapeutics (NYSE:ADCT) and Mirum Pharmaceuticals (NASDAQ:MIRM) are both healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitability, valuation, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares ADC Therapeutics and Mirum Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ADC Therapeutics	$81.36 million	2.47	-$142.62 million	($0.66)	-2.39
Mirum Pharmaceuticals	$521.31 million	11.74	-$23.36 million	($15.47)	-6.06

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

Analyst Ratings

This is a summary of current recommendations for ADC Therapeutics and Mirum Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADC Therapeutics	1	2	3	0	2.33
Mirum Pharmaceuticals	1	0	13	1	2.93

ADC Therapeutics presently has a consensus price target of $5.00, indicating a potential upside of 217.46%. Mirum Pharmaceuticals has a consensus price target of $154.94, indicating a potential upside of 65.32%. Given ADC Therapeutics’ higher possible upside, equities analysts plainly believe ADC Therapeutics is more favorable than Mirum Pharmaceuticals.

Risk and Volatility

ADC Therapeutics has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500. Comparatively, Mirum Pharmaceuticals has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

Profitability

This table compares ADC Therapeutics and Mirum Pharmaceuticals’ 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%
Mirum Pharmaceuticals	-134.75%	-97.25%	-12.59%

Insider and Institutional Ownership

41.1% of ADC Therapeutics shares are held by institutional investors. 5.1% of ADC Therapeutics shares are held by company insiders. Comparatively, 8.3% of Mirum Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Mirum Pharmaceuticals beats ADC Therapeutics on 8 of the 15 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 Mirum Pharmaceuticals

Mirum Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of novel therapies for debilitating rare and orphan diseases. Its lead product candidate is LIVMARLI (maralixibat), an orally administered and minimally absorbed ileal bile acid transporter (IBAT) inhibitor that is approved for the treatment of cholestatic pruritus in patients with Alagille syndrome in the United States and internationally. The company is also involved in the commercialization of Cholbam, a cholic acid capsule, which is approved as treatment for pediatric and adult patients with bile acid synthesis disorders due to single enzyme defects and for adjunctive treatment of patients with peroxisomal disorders, including peroxisome biogenesis disorder-Zellweger spectrum disorder and Smith-Lemli-Opitz syndrome; and Chenodal, a tablet, which is approved for the treatment of radiolucent stones in the gallbladder, and under Phase 3 development for the treatment cerebrotendinous xanthomatosis. In addition, it develops Volixibat, an oral and minimally absorbed agent designed to inhibit IBAT, currently under Phase 2b clinical trial for the treatment of adult patients with cholestatic liver diseases. The company was incorporated in 2018 and is headquartered in Foster City, California.