Contrasting Iterum Therapeutics (NASDAQ:ITRM) & MacroGenics (NASDAQ:MGNX)

Iterum Therapeutics (NASDAQ:ITRMGet Free Report) and MacroGenics (NASDAQ:MGNXGet Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Profitability

This table compares Iterum Therapeutics and MacroGenics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Iterum Therapeutics N/A -216.28% -57.67%
MacroGenics 41.13% -51.83% -25.18%

Institutional & Insider Ownership

3.4% of Iterum Therapeutics shares are owned by institutional investors. Comparatively, 96.9% of MacroGenics shares are owned by institutional investors. 5.4% of Iterum Therapeutics shares are owned by company insiders. Comparatively, 10.0% of MacroGenics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Iterum Therapeutics and MacroGenics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Iterum Therapeutics 0 0 1 0 3.00
MacroGenics 0 0 6 0 3.00

Iterum Therapeutics currently has a consensus target price of $6.00, indicating a potential upside of 282.17%. MacroGenics has a consensus target price of $13.67, indicating a potential downside of 23.74%. Given Iterum Therapeutics’ higher possible upside, research analysts clearly believe Iterum Therapeutics is more favorable than MacroGenics.

Volatility & Risk

Iterum Therapeutics has a beta of 2.41, meaning that its stock price is 141% more volatile than the S&P 500. Comparatively, MacroGenics has a beta of 2.16, meaning that its stock price is 116% more volatile than the S&P 500.

Valuation & Earnings

This table compares Iterum Therapeutics and MacroGenics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Iterum Therapeutics N/A N/A -$44.43 million ($2.44) -0.64
MacroGenics $151.94 million 7.32 -$119.76 million $0.80 22.40

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

Summary

MacroGenics beats Iterum Therapeutics on 9 of the 12 factors compared between the two stocks.

About Iterum Therapeutics

(Get Free Report)

Iterum Therapeutics plc, a clinical-stage pharmaceutical company, engages in developing and commercializing anti-infectives in Ireland, Bermuda, and the United States. It is developing sulopenem, a novel anti-infective compound with oral and IV formulations that is in Phase III clinical trials for the treatment of uncomplicated urinary tract infections, complicated urinary tract infections, and complicated intra-abdominal infections. The company was incorporated in 2015 and is headquartered in Dublin, Ireland.

About MacroGenics

(Get Free Report)

MacroGenics, Inc., a biopharmaceutical company, develops and commercializes antibody-based therapeutics to treat cancer in the United States. Its approved product is MARGENZA (margetuximab-cmkb), a human epidermal growth factor receptor 2 (HER2) receptor antagonist indicated, in combination with chemotherapy, for the treatment of adult patients with metastatic HER2-positive breast cancer who have received two or more prior anti-HER2 regimens. The company's pipeline of immuno-oncology product candidates includes MGC018, an antibody drug conjugate (ADC), which targets solid tumors expressing B7-H3; Enoblituzumab, a monoclonal antibody that targets B7-H3; and MGD024, an investigational bispecific CD123 × CD3 DART molecule to minimize cytokine-release syndrome for patients with hematologic malignancies. In addition, it develops Lorigerlimab, a monoclonal antibody that targets the immune checkpoints PD-1 and cytotoxic T-lymphocyte-associated protein 4; Tebotelimab, an investigational tetravalent DART molecule for PD-1 and lymphocyte-activation gene 3;Retifanlimab, an monoclonal antibody used for cancer therapeutics; and IMGC936, an ADC that targets ADAM9, a cell surface protein over-expressed in various solid tumor types. Further, the company develops MGD014 and MGD020, a DART molecule to target the envelope protein of human immunodeficiency virus infected cells and CD3 on T cells; Teplizumab for the treatment of type 1 diabetes; and PRV-3279, a CD32B × CD79B DART molecule for the treatment of autoimmune indications. It has collaborations with Incyte Corporation; Zai Lab Limited; I-Mab Biopharma; and Janssen Biotech, Inc. The company was incorporated in 2000 and is headquartered in Rockville, Maryland.

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