Financial Review: MacroGenics (NASDAQ:MGNX) versus IM Cannabis (NASDAQ:IMCC)

MacroGenics (NASDAQ:MGNXGet Free Report) and IM Cannabis (NASDAQ:IMCCGet Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares MacroGenics and IM Cannabis”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MacroGenics $149.96 million 0.58 -$66.97 million ($1.20) -1.15
IM Cannabis $39.44 million 0.24 -$7.72 million ($0.78) -2.29

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

Profitability

This table compares MacroGenics and IM Cannabis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MacroGenics -59.46% -98.30% -30.28%
IM Cannabis -9.47% -134.35% -11.66%

Volatility & Risk

MacroGenics has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, IM Cannabis has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for MacroGenics and IM Cannabis, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MacroGenics 1 3 1 2 2.57
IM Cannabis 1 0 0 0 1.00

MacroGenics presently has a consensus target price of $3.60, indicating a potential upside of 160.87%. Given MacroGenics’ stronger consensus rating and higher probable upside, analysts plainly believe MacroGenics is more favorable than IM Cannabis.

Institutional and Insider Ownership

96.9% of MacroGenics shares are held by institutional investors. Comparatively, 7.7% of IM Cannabis shares are held by institutional investors. 13.0% of MacroGenics shares are held by company insiders. Comparatively, 5.9% of IM Cannabis shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

MacroGenics beats IM Cannabis on 10 of the 15 factors compared between the two stocks.

About MacroGenics

(Get Free Report)

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.

About IM Cannabis

(Get Free Report)

IM Cannabis Corp. engages in breeding, growing, and supply of medical cannabis products in Israel and Germany. It offers cannabis flowers and strain-specific cannabis extracts under the IMC brand; and dried flower, pre-rolls, minis, and full spectrum extracts offerings under the WAGNERS and BLKMKT brands. The company serves medical patients. IM Cannabis Corp. is headquartered in Tel Aviv, Israel.

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