Madrigal Pharmaceuticals (NASDAQ:MDGL – Get Free Report) and Xilio Therapeutics (NASDAQ:XLO – Get Free Report) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.
Analyst Recommendations
This is a breakdown of current ratings for Madrigal Pharmaceuticals and Xilio Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Madrigal Pharmaceuticals | 1 | 1 | 7 | 1 | 2.80 |
| Xilio Therapeutics | 0 | 0 | 1 | 0 | 3.00 |
Madrigal Pharmaceuticals presently has a consensus target price of $378.44, indicating a potential upside of 8.64%. Xilio Therapeutics has a consensus target price of $4.00, indicating a potential upside of 399.88%. Given Xilio Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Xilio Therapeutics is more favorable than Madrigal Pharmaceuticals.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Madrigal Pharmaceuticals | $180.13 million | 42.70 | -$373.63 million | ($22.11) | -15.76 |
| Xilio Therapeutics | $6.34 million | 6.53 | -$76.40 million | ($1.28) | -0.63 |
Xilio Therapeutics has lower revenue, but higher earnings than Madrigal Pharmaceuticals. Madrigal Pharmaceuticals is trading at a lower price-to-earnings ratio than Xilio Therapeutics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Madrigal Pharmaceuticals and Xilio 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% |
| Xilio Therapeutics | N/A | -211.50% | -80.31% |
Insider and Institutional Ownership
98.5% of Madrigal Pharmaceuticals shares are owned by institutional investors. Comparatively, 54.3% of Xilio Therapeutics shares are owned by institutional investors. 22.8% of Madrigal Pharmaceuticals shares are owned by insiders. Comparatively, 5.2% of Xilio Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Madrigal Pharmaceuticals has a beta of -0.41, meaning that its share price is 141% less volatile than the S&P 500. Comparatively, Xilio Therapeutics has a beta of -0.38, meaning that its share price is 138% less volatile than the S&P 500.
Summary
Madrigal Pharmaceuticals beats Xilio Therapeutics on 8 of the 14 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 Xilio Therapeutics
Xilio Therapeutics, Inc., a clinical-stage biotechnology company, engages in the discovery and development of tumor-activated immuno-oncology therapies. The company’s checkpoint inhibitor program includes XTX101, an investigational Fc-enhanced, tumor-activated anti-CTLA-4 mAb that is in Phase 2 clinical trial for patients with advanced solid tumors. It also develops cytokine programs, which comprises XTX202, a tumor-activated beta-gamma biased IL-2, currently under Phase 2 clinal trials; and XTX301, an investigational tumor-activated, engineered IL-12 molecule, currently under Phase 1 studies. The company was founded in 2016 and is headquartered in Waltham, Massachusetts.
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