Madrigal Pharmaceuticals (NASDAQ:MDGL – Get Free Report) and Larimar Therapeutics (NASDAQ:LRMR – Get Free Report) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.
Profitability
This table compares Madrigal Pharmaceuticals and Larimar Therapeutics’ 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% |
| Larimar Therapeutics | N/A | -35.87% | -32.37% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Madrigal Pharmaceuticals and Larimar Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Madrigal Pharmaceuticals | 0 | 1 | 9 | 0 | 2.90 |
| Larimar Therapeutics | 0 | 0 | 8 | 1 | 3.11 |
Risk & Volatility
Madrigal Pharmaceuticals has a beta of -0.91, meaning that its share price is 191% less volatile than the S&P 500. Comparatively, Larimar Therapeutics has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.
Insider and Institutional Ownership
98.5% of Madrigal Pharmaceuticals shares are owned by institutional investors. Comparatively, 91.9% of Larimar Therapeutics shares are owned by institutional investors. 21.5% of Madrigal Pharmaceuticals shares are owned by company insiders. Comparatively, 4.5% of Larimar Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Madrigal Pharmaceuticals and Larimar Therapeutics”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 | 19.46 | -$373.63 million | ($18.05) | -15.41 |
| Larimar Therapeutics | N/A | N/A | -$36.95 million | ($1.49) | -1.80 |
Larimar Therapeutics has lower revenue, but higher earnings than Madrigal Pharmaceuticals. Madrigal Pharmaceuticals is trading at a lower price-to-earnings ratio than Larimar Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
Larimar Therapeutics beats Madrigal Pharmaceuticals on 9 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 Larimar Therapeutics
Larimar Therapeutics, Inc., a clinical-stage biotechnology company, focuses on developing treatments for rare diseases using its novel cell penetrating peptide technology platform. Its lead product candidate is CTI-1601, which is in Phase 2 OLE clinical trial for the treatment of Friedreich's ataxia, a rare, progressive and fatal genetic disease. Larimar Therapeutics, Inc. is based in Bala Cynwyd, Pennsylvania.
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