Contrasting Arvinas (NASDAQ:ARVN) and Mustang Bio (NASDAQ:MBIO)

Mustang Bio (NASDAQ:MBIO) and Arvinas (NASDAQ:ARVN) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Valuation & Earnings

This table compares Mustang Bio and Arvinas”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mustang Bio	N/A	N/A	-$51.60 million	($78.00)	-0.02
Arvinas	$426.90 million	1.16	-$198.90 million	($0.66)	-10.31

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

Analyst Ratings

This is a summary of recent ratings and price targets for Mustang Bio and Arvinas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mustang Bio	0	0	1	0	3.00
Arvinas	0	8	11	0	2.58

Mustang Bio currently has a consensus target price of $100.00, indicating a potential upside of 8,410.64%. Arvinas has a consensus target price of $20.97, indicating a potential upside of 208.30%. Given Mustang Bio’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Mustang Bio is more favorable than Arvinas.

Profitability

This table compares Mustang Bio and Arvinas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mustang Bio	N/A	N/A	-172.89%
Arvinas	-75.51%	-33.75%	-16.75%

Insider and Institutional Ownership

9.9% of Mustang Bio shares are owned by institutional investors. Comparatively, 95.2% of Arvinas shares are owned by institutional investors. 0.2% of Mustang Bio shares are owned by company insiders. Comparatively, 5.2% of Arvinas shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Mustang Bio has a beta of 2.27, meaning that its share price is 127% more volatile than the S&P 500. Comparatively, Arvinas has a beta of 2.21, meaning that its share price is 121% more volatile than the S&P 500.

Summary

Mustang Bio beats Arvinas on 7 of the 13 factors compared between the two stocks.

About Mustang Bio

Mustang Bio, Inc., a clinical-stage biopharmaceutical company, focuses on translating medical breakthroughs in cell and gene therapies into potential cures for hematologic cancers, solid tumors, and rare genetic diseases. Its pipeline focuses on gene therapy programs for rare genetic disorders, chimeric antigen receptor (CAR) engineered T cell (CAR T) therapies for hematologic malignancies, and CAR T therapies for solid tumors. The company develops MB-117 and MB-217, a gene therapy program for X-linked severe combined immunodeficiency, a rare genetic immune system condition in which affected patients do not live beyond infancy without treatment. The company also develops MB-106 CAR T cell program for B cell non-hodgkin lymphoma and chronic lymphocytic leukemia; MB-101 CAR T cell program for glioblastoma; MB-108, a next-generation oncolytic herpes simplex virus. It has license agreements with Nationwide Children's Hospital, CSL Behring; Mayo Clinic; Leiden University Medical Centre; SIRION Biotech GmbH. The company was incorporated in 2015 and is headquartered in Worcester, Massachusetts.

About Arvinas

Arvinas, Inc., a clinical-stage biotechnology company, engages in the discovery, development, and commercialization of therapies to degrade disease-causing proteins. The company engineers proteolysis targeting chimeras (PROTAC) targeted protein degraders that are designed to harness the body’s own natural protein disposal system to degrade and remove disease-causing proteins. Its product pipeline includes Bavdegalutamide and ARV-766, investigational orally bioavailable PROTAC protein degraders for the treatment of men with metastatic castration-resistant prostate cancer, which are in Phase 1/2 clinical trials; and ARV-471, an orally bioavailable estrogen receptor degrading PROTAC targeted protein degrader for the treatment of patients with locally advanced or metastatic estrogen receptor+/human epidermal growth factor receptor 2-breast cancer, which is Phase 3 clinical trial. Arvinas, Inc. has collaborations with Pfizer Inc., Genentech, Inc., F. Hoffman-La Roche Ltd., Carrick Therapeutics Limited, and Bayer AG. The company was founded in 2013 and is based in New Haven, Connecticut.