Head to Head Survey: ADC Therapeutics (NYSE:ADCT) & Sagimet Biosciences (NASDAQ:SGMT)

ADC Therapeutics (NYSE:ADCT) and Sagimet Biosciences (NASDAQ:SGMT) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Insider & Institutional Ownership

41.1% of ADC Therapeutics shares are held by institutional investors. Comparatively, 87.9% of Sagimet Biosciences shares are held by institutional investors. 5.1% of ADC Therapeutics shares are held by insiders. Comparatively, 11.5% of Sagimet Biosciences shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares ADC Therapeutics and Sagimet Biosciences”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ADC Therapeutics	$81.36 million	2.93	-$142.62 million	($0.66)	-2.83
Sagimet Biosciences	$2.00 million	273.50	-$51.04 million	($1.28)	-6.88

Sagimet Biosciences has lower revenue, but higher earnings than ADC Therapeutics. Sagimet Biosciences 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 breakdown of current recommendations and price targets for ADC Therapeutics and Sagimet Biosciences, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADC Therapeutics	1	2	3	0	2.33
Sagimet Biosciences	2	1	9	0	2.58

ADC Therapeutics currently has a consensus target price of $5.00, indicating a potential upside of 168.10%. Sagimet Biosciences has a consensus target price of $26.63, indicating a potential upside of 202.66%. Given Sagimet Biosciences’ stronger consensus rating and higher possible upside, analysts clearly believe Sagimet Biosciences is more favorable than ADC Therapeutics.

Risk & Volatility

ADC Therapeutics has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500. Comparatively, Sagimet Biosciences has a beta of 3.46, suggesting that its share price is 246% more volatile than the S&P 500.

Profitability

This table compares ADC Therapeutics and Sagimet Biosciences’ 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%
Sagimet Biosciences	N/A	-31.96%	-30.57%

Summary

Sagimet Biosciences beats ADC Therapeutics on 10 of the 14 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 Sagimet Biosciences

Sagimet Biosciences Inc., a clinical-stage biopharmaceutical company, develops therapeutics called fatty acid synthase (FASN) inhibitors for the treatment of diseases that result from dysfunctional metabolic pathways in the United States. The company’s lead drug candidate is Denifanstat, a once-daily pill and selective FASN inhibitor for the treatment of metabolic dysfunction associated steatohepatitis. It also develops TVB-3567, a FASN inhibitor for the treatment of acne; and other oncology programs. The company was formerly known as 3-V Biosciences, Inc. and changed its name to Sagimet Biosciences Inc. in August 2019. Sagimet Biosciences Inc. was incorporated in 2006 and is headquartered in San Mateo, California.