Analyzing HUTCHMED (NASDAQ:HCM) and Adicet Bio (NASDAQ:ACET)

Adicet Bio (NASDAQ:ACET) and HUTCHMED (NASDAQ:HCM) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Volatility & Risk

Adicet Bio has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500. Comparatively, HUTCHMED has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.

Valuation & Earnings

This table compares Adicet Bio and HUTCHMED”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adicet Bio	$24.99 million	2.22	-$142.66 million	($1.34)	-0.50
HUTCHMED	$630.20 million	4.15	$100.78 million	N/A	N/A

HUTCHMED has higher revenue and earnings than Adicet Bio.

Insider and Institutional Ownership

83.9% of Adicet Bio shares are owned by institutional investors. Comparatively, 8.8% of HUTCHMED shares are owned by institutional investors. 19.1% of Adicet Bio shares are owned by company insiders. Comparatively, 3.6% of HUTCHMED shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Adicet Bio and HUTCHMED’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adicet Bio	N/A	-53.85%	-46.45%
HUTCHMED	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings for Adicet Bio and HUTCHMED, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adicet Bio	0	2	3	0	2.60
HUTCHMED	0	1	0	0	2.00

Adicet Bio currently has a consensus target price of $7.50, indicating a potential upside of 1,019.40%. HUTCHMED has a consensus target price of $19.00, indicating a potential upside of 26.67%. Given Adicet Bio’s stronger consensus rating and higher probable upside, analysts clearly believe Adicet Bio is more favorable than HUTCHMED.

Summary

Adicet Bio beats HUTCHMED on 6 of the 11 factors compared between the two stocks.

About Adicet Bio

Adicet Bio, Inc., a clinical stage biotechnology company, discovers and develops allogeneic gamma delta T cell therapies for autoimmune diseases and cancer. The company offers gamma delta T cells engineered with chimeric antigen receptors (CARs) to facilitate durable activity in patients. Its lead product candidate is ADI-001, an allogeneic gamma delta T cell therapy expressing a CAR targeting CD20, which is in Phase I clinical trial for the treatment of autoimmune diseases and relapsed or refractory aggressive B cell non-Hodgkin's lymphoma. The company is also developing ADI-270, an armored gamma delta CAR T cell product candidate targeting renal cell carcinoma for treating other CD70+ solid tumor and hematological malignancies indications. The company was founded in 2014 and is based in Boston, Massachusetts.

About HUTCHMED

HUTCHMED (China) Ltd. is a holding company, which engages in the research and development, manufacture, and sale of pharmaceuticals and health-oriented consumer products. It operates through the Oncology/Immunology and Other Ventures segments. The Oncology/Immunology segment includes the discovery, development, and commercialization of targeted therapies and immunotherapies for the treatment of cancer and immunological diseases. The Other Ventures segment involves the other commercial businesses which include the sales, marketing, manufacture, and distribution of prescription drugs and healthcare products. The company was founded on December 18, 2000 and is headquartered in Hong Kong.