Contrasting MacroGenics (NASDAQ:MGNX) and Avidity Biosciences (NASDAQ:RNA)

MacroGenics (NASDAQ:MGNX) and Avidity Biosciences (NASDAQ:RNA) are both small-cap healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Analyst Ratings

This is a summary of recent ratings and recommmendations for MacroGenics and Avidity Biosciences, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MacroGenics	1	3	2	0	2.17
Avidity Biosciences	1	11	3	1	2.25

MacroGenics presently has a consensus price target of $6.33, indicating a potential upside of 69.34%. Avidity Biosciences has a consensus price target of $63.75, indicating a potential upside of 669.00%. Given Avidity Biosciences’ stronger consensus rating and higher possible upside, analysts clearly believe Avidity Biosciences is more favorable than MacroGenics.

Earnings & Valuation

This table compares MacroGenics and Avidity Biosciences”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MacroGenics	$149.50 million	1.59	-$74.62 million	($0.22)	-17.00
Avidity Biosciences	N/A	N/A	N/A	($2.15)	-3.86

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

Profitability

This table compares MacroGenics and Avidity Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MacroGenics	-8.70%	-109.26%	-18.70%
Avidity Biosciences	N/A	N/A	N/A

Institutional & Insider Ownership

96.9% of MacroGenics shares are held by institutional investors. 13.6% of MacroGenics shares are held by insiders. Comparatively, 3.8% of Avidity Biosciences shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Avidity Biosciences beats MacroGenics on 8 of the 12 factors compared between the two stocks.

About MacroGenics

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 Avidity Biosciences

Avidity Biosciences, Inc., a biopharmaceutical company, engages in the delivery of RNA therapeutics. It develops antibody oligonucleotide conjugates (AOC) that are designed to treat diseases previously untreatable with RNA therapeutics. The company's lead product candidate AOC 1001 for the treatment of myotonic dystrophy type 1, a rare monogenic muscle disease that is in phase 1/2 clinical trial. Its other products in pipeline include AOC 1044 for the treatment of duchenne muscular dystrophy, which is under phase 1/2 clinical development trial; and AOC 1020 to treat facioscapulohumeral muscular dystrophy that is in phase 1/2 clinical trial. The company is developing products for rare skeletal muscle and rare cardiac diseases. Avidity Biosciences, Inc. was incorporated in 2012 and is headquartered in San Diego, California.