Head to Head Analysis: MacroGenics (MGNX) versus Shire (SHPG)

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MacroGenics (NASDAQ:MGNX) and Shire (NASDAQ:SHPG) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Valuation & Earnings

This table compares MacroGenics and Shire’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MacroGenics $157.74 million 3.83 -$19.62 million ($0.54) -26.48
Shire $15.16 billion 3.61 $4.27 billion $15.15 11.83

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

Profitability

This table compares MacroGenics and Shire’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MacroGenics -10.72% -7.39% -5.85%
Shire 30.63% 12.70% 7.06%

Institutional & Insider Ownership

87.0% of MacroGenics shares are owned by institutional investors. Comparatively, 20.2% of Shire shares are owned by institutional investors. 8.8% of MacroGenics shares are owned by insiders. Comparatively, 2.0% of Shire 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

MacroGenics has a beta of 2.55, suggesting that its share price is 155% more volatile than the S&P 500. Comparatively, Shire has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Dividends

Shire pays an annual dividend of $0.34 per share and has a dividend yield of 0.2%. MacroGenics does not pay a dividend. Shire pays out 2.2% of its earnings in the form of a dividend. Shire has increased its dividend for 6 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for MacroGenics and Shire, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MacroGenics 1 1 7 0 2.67
Shire 0 6 6 0 2.50

MacroGenics presently has a consensus target price of $32.17, suggesting a potential upside of 124.94%. Shire has a consensus target price of $198.13, suggesting a potential upside of 10.56%. Given MacroGenics’ stronger consensus rating and higher possible upside, research analysts clearly believe MacroGenics is more favorable than Shire.

Summary

Shire beats MacroGenics on 9 of the 17 factors compared between the two stocks.

About MacroGenics

MacroGenics, Inc., a biopharmaceutical company, discovers and develops antibody-based therapeutics for the treatment of cancer primarily by modulating the human immune system, and autoimmune disorders and infectious diseases in the United States. The company's advanced clinical product candidate is Margetuximab, a monoclonal antibody, which is in Phase III clinical trial that targets human epidermal growth factor receptor 2-expressing tumors, such as various breast and gastroesophageal cancers. It is also developing Flotetuzumab, a DART molecule that targets CD123 and CD3; MGA012, a monoclonal antibody, which targets programmed cell death protein 1 (PD-1); MGD013, a DART molecule that enables the co-blockade with a single recombinant agent of two immune checkpoint molecules; MGD019, a preclinical DART molecule designed to recognize the immune checkpoints PD-1 and cytotoxic T-lymphocyte-associated protein 4 (CTLA-4); and Enoblituzumab, a monoclonal antibody that targets B7-H3. In addition, the company develops MGD009, a DART molecule recognizes B7-H3 and CD3; MGC018, a B7-H3 antibody-drug conjugate; MGD007, a DART molecule, which targets glycoprotein A33 and CD3; Teplizumab, an anti-CD3 monoclonal antibody to treat type 1 diabetes; MGD010, a DART molecule designed to address limitations of existing B cell-targeted therapies by binding to the CD32B and CD79B proteins found on human B cells; and MGD014, a DART molecule that targets the envelope protein of human immunodeficiency virus, or HIV-infected cells and CD3-expressing T cells. It has strategic collaborations with Incyte Corporation; Les Laboratoires Servier and Institut de Recherches Servier; and F. Hoffmann-La Roche Ltd. and Hoffmann-La Roche Inc. The company also has a translational research agreement with NanoString Technologies, Inc. for the identification and development of biomarkers for MGD013 program. MacroGenics, Inc. was founded in 2000 and is headquartered in Rockville, Maryland.

About Shire

Shire plc, a biotechnology company, researches, develops, licenses, manufactures, markets, distributes, and sells medicines for rare diseases and other specialized conditions worldwide. The company offers products in therapeutic areas, including hematology, genetic diseases, neuroscience, immunology, internal medicine, ophthalmology, and oncology. Its marketed products include ADVATE, ADYNOVATE/ADYNOVI, and OBIZUR for the treatment of hemophilia A; RIXUBIS to treat hemophilia B; VONVENDI for the treatment of von willebrand disease; FEIBA to treat hemophilia A and B patients with inhibitors; ELAPRASE to treat hunter syndrome; REPLAGAL for fabry disease; and VPRIV to treat type 1 Gaucher disease. The company's marketed products also comprise VYVANSE/VENVANSE/ELVANSE/TYVENSE/VUXEN/ADUVANZ for the treatment of attention deficit/hyperactivity disorder (ADHD) and binge eating disorder; ADDERALL XR and MYDAYIS to treat ADHD; GAMMAGARD LIQUID/KIOVIG, GAMMAGARD S/D, HYQVIA, and CUVITRU for the treatment of primary immunodeficiency; and FLEXBUMIN to treat hypovolemia and hypoalbuminemia. In addition, its marketed products consists of CINRYZE and FIRAZYR for the treatment of hereditary angioedema; FOSRENOL to treat hyperphosphatemia; LIALDA/MEZAVANT and PENTASA for ulcerative colitis; GATTEX/REVESTIVE for the treatment of short bowel syndrome; NATPARA for the control of hypocalcemia in patients with hypoparathyroidism; ONCASPAR to treat acute lymphoblastic leukemia; ONYVIDE for metastatic adenocarcinoma of the pancreas; and XIIDRA for the treatment of dry eye disease. The company markets its products through wholesalers, distributors, and pharmacies. It has collaborative and other licensing arrangements with Rani Therapeutics LLC; Parion Sciences Inc.; Pfizer Inc.; Precision BioSciences Inc.; Symphogen; and Ipsen Bioscience Inc., as well as a preclinical research collaboration agreement with NanoMedSyn. The company was founded in 1986 and is headquartered in Dublin, Ireland.

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