Critical Comparison: Madrigal Pharmaceuticals (NASDAQ:MDGL) versus Praxsyn (OTCMKTS:PXYN)

Praxsyn (OTCMKTS:PXYN) and Madrigal Pharmaceuticals (NASDAQ:MDGL) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Praxsyn and Madrigal Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Praxsyn	0	0	0	0	0.00
Madrigal Pharmaceuticals	2	2	12	1	2.71

Madrigal Pharmaceuticals has a consensus target price of $669.86, indicating a potential upside of 53.99%. Given Madrigal Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Madrigal Pharmaceuticals is more favorable than Praxsyn.

Insider & Institutional Ownership

98.5% of Madrigal Pharmaceuticals shares are owned by institutional investors. 21.5% of Madrigal Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Praxsyn and Madrigal Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Praxsyn	N/A	N/A	N/A
Madrigal Pharmaceuticals	-30.08%	-42.55%	-25.63%

Volatility & Risk

Praxsyn has a beta of 2.18, indicating that its share price is 118% more volatile than the S&P 500. Comparatively, Madrigal Pharmaceuticals has a beta of -1.01, indicating that its share price is 201% less volatile than the S&P 500.

Valuation and Earnings

This table compares Praxsyn and Madrigal Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Praxsyn	N/A	N/A	N/A	N/A	N/A
Madrigal Pharmaceuticals	$958.40 million	10.31	-$465.89 million	($13.01)	-33.44

Praxsyn has higher earnings, but lower revenue than Madrigal Pharmaceuticals.

Summary

Madrigal Pharmaceuticals beats Praxsyn on 7 of the 11 factors compared between the two stocks.

About Praxsyn

Praxsyn Corporation, a health care company, provides medical practitioners with medications and services for their patients. It formulates non-narcotic and non-habit forming medications using therapeutic and preventative agents in the forms of transdermal creams, patches, and oral capsules for pain management, erectile dysfunction, and metabolic therapies. Praxsyn Corporation provides its products to patients covered under the California workers’ compensation system, as well as preferred provider contracts. The company was formerly known as The PAWS Pet Company, Inc. and changed its name to Praxsyn Corporation in March 2014. Praxsyn Corporation was founded in 2005 and is headquartered in Las Vegas, Nevada.

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.