Insmed (NASDAQ:INSM) and Genmab A/S (NASDAQ:GMAB) Critical Analysis

Insmed (NASDAQ:INSM) and Genmab A/S (NASDAQ:GMAB) are both large-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares Insmed and Genmab A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Insmed	-264.83%	-183.55%	-54.63%
Genmab A/S	41.36%	23.98%	19.45%

Earnings & Valuation

This table compares Insmed and Genmab A/S”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Insmed	$363.71 million	115.52	-$913.77 million	($6.19)	-31.83
Genmab A/S	$3.12 billion	6.44	$1.14 billion	$2.35	13.32

Genmab A/S has higher revenue and earnings than Insmed. Insmed is trading at a lower price-to-earnings ratio than Genmab A/S, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Insmed and Genmab A/S, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Insmed	1	1	20	1	2.91
Genmab A/S	1	3	6	1	2.64

Insmed presently has a consensus price target of $196.26, indicating a potential downside of 0.38%. Genmab A/S has a consensus price target of $39.75, indicating a potential upside of 26.96%. Given Genmab A/S’s higher probable upside, analysts clearly believe Genmab A/S is more favorable than Insmed.

Institutional and Insider Ownership

7.1% of Genmab A/S shares are held by institutional investors. 3.0% of Insmed shares are held by insiders. Comparatively, 1.5% of Genmab A/S shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Insmed has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Genmab A/S has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Summary

Genmab A/S beats Insmed on 9 of the 14 factors compared between the two stocks.

About Insmed

Insmed Incorporated is a global biopharmaceutical company on a mission to transform the lives of patients with serious and rare diseases. Insmed’s first commercial product is ARIKAYCE® (amikacin liposome inhalation suspension), which is approved in the United States for the treatment of Mycobacterium avium complex (MAC) lung disease as part of a combination antibacterial drug regimen for adult patients with limited or no alternative treatment options. MAC lung disease is a rare and often chronic infection that can cause irreversible lung damage and can be fatal. Insmed’s earlier-stage clinical pipeline includes INS1007, a novel oral reversible inhibitor of dipeptidyl peptidase 1 with therapeutic potential in non-cystic fibrosis bronchiectasis and other inflammatory diseases, and INS1009, an inhaled formulation of a treprostinil prodrug that may offer a differentiated product profile for rare pulmonary disorders, including pulmonary arterial hypertension.

About Genmab A/S

Genmab A/S develops antibody therapeutics for the treatment of cancer and other diseases primarily in Denmark. The company markets DARZALEX, a human monoclonal antibody for the treatment of patients with multiple myeloma (MM); teprotumumab for the treatment of thyroid eye disease; and Amivantamab for advanced or metastatic gastric or esophageal cancer and NSCLC. Its products include daratumumab to treat MM, non-MM blood cancers, and AL amyloidosis; GEN1047; tisotumab vedotin for treating cervical, ovarian, and solid cancers; DuoBody-PD-L1x4-1BB, and DuoBody-CD40x4-1BB for treating solid tumors; Epcoritamab for relapsed/refractory diffuse large B-cell lymphoma and chronic lymphocytic leukemia; and HexaBody-CD38 and GEN3017 for treating hematological malignancies. In addition, the company develops Inclacumab, which is in Phase 3 trial for vaso-occlusive crises; Camidanlumab tesirine to treat hodgkin lymphoma and solid tumors; JNJ-64007957 and JNJ-64407564 to treat MM; PRV-015 for treating celiac disease; Mim8 for treating haemophilia A; and Lu AF82422 for treating multiple system atrophy disease. It operates various active pre-clinical programs. The company has a commercial license and collaboration agreement with Seagen Inc. to co-develop tisotumab vedotin. It also has a collaboration agreement with argenx to discover, develop, and commercialize novel therapeutic antibodies with applications in immunology and oncology; and AbbVie for the development of epcoritamab, as well as collaborations with BioNTech, Janssen, and Novo Nordisk A/S. Genmab A/S was founded in 1999 and is headquartered in Copenhagen, Denmark.