Financial Analysis: MacroGenics (MGNX) vs. Its Rivals

MacroGenics (NASDAQ:MGNX) is one of 844 public companies in the “Biotechnology” industry, but how does it compare to its competitors? We will compare MacroGenics to related companies based on the strength of its dividends, analyst recommendations, valuation, profitability, risk, earnings and institutional ownership.

Volatility & Risk

MacroGenics has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, MacroGenics’ competitors have a beta of 1.14, suggesting that their average stock price is 14% more volatile than the S&P 500.

Institutional & Insider Ownership

96.9% of MacroGenics shares are owned by institutional investors. Comparatively, 47.9% of shares of all “Biotechnology” companies are owned by institutional investors. 13.6% of MacroGenics shares are owned by company insiders. Comparatively, 13.1% of shares of all “Biotechnology” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares MacroGenics and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MacroGenics	-8.70%	-109.26%	-18.70%
MacroGenics Competitors	-9,054.29%	-198.66%	-30.54%

Analyst Recommendations

This is a summary of current ratings and target prices for MacroGenics and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MacroGenics	1	2	3	0	2.33
MacroGenics Competitors	9773	15032	45240	1571	2.54

MacroGenics currently has a consensus target price of $6.33, indicating a potential upside of 163.89%. As a group, “Biotechnology” companies have a potential upside of 95.57%. Given MacroGenics’ higher possible upside, equities analysts clearly believe MacroGenics is more favorable than its competitors.

Earnings & Valuation

This table compares MacroGenics and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
MacroGenics	$149.50 million	-$74.62 million	-10.91
MacroGenics Competitors	$722.78 million	$12.25 million	-10.11

MacroGenics’ competitors have higher revenue and earnings than MacroGenics. MacroGenics is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

MacroGenics beats its competitors on 7 of the 13 factors compared.

MacroGenics Company Profile

MacroGenics, Inc., a biopharmaceutical company, develops, manufactures, 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, a humanized monoclonal antibody targeting programmed death receptor-1; 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.