Head to Head Survey: Fate Therapeutics (NASDAQ:FATE) & Mirum Pharmaceuticals (NASDAQ:MIRM)

Fate Therapeutics (NASDAQ:FATE) and Mirum Pharmaceuticals (NASDAQ:MIRM) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Fate Therapeutics and Mirum Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fate Therapeutics	1	3	4	0	2.38
Mirum Pharmaceuticals	1	0	13	1	2.93

Fate Therapeutics presently has a consensus price target of $5.90, suggesting a potential upside of 145.32%. Mirum Pharmaceuticals has a consensus price target of $142.56, suggesting a potential upside of 73.65%. Given Fate Therapeutics’ higher possible upside, analysts clearly believe Fate Therapeutics is more favorable than Mirum Pharmaceuticals.

Insider & Institutional Ownership

97.5% of Fate Therapeutics shares are held by institutional investors. 4.7% of Fate Therapeutics shares are held by insiders. Comparatively, 8.3% of Mirum Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Fate Therapeutics has a beta of 2.52, suggesting that its stock price is 152% more volatile than the S&P 500. Comparatively, Mirum Pharmaceuticals has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fate Therapeutics	$6.65 million	43.33	-$136.32 million	($1.05)	-2.29
Mirum Pharmaceuticals	$521.31 million	10.23	-$23.36 million	($14.55)	-5.64

Mirum Pharmaceuticals has higher revenue and earnings than Fate Therapeutics. Mirum Pharmaceuticals is trading at a lower price-to-earnings ratio than Fate Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Fate Therapeutics and Mirum Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fate Therapeutics	-1,941.09%	-65.08%	-41.73%
Mirum Pharmaceuticals	-139.18%	-36.28%	-8.54%

Summary

Mirum Pharmaceuticals beats Fate Therapeutics on 9 of the 15 factors compared between the two stocks.

About Fate Therapeutics

Fate Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops programmed cellular immunotherapies for cancer and immune disorders worldwide. The company's chimeric antigen receptor (CAR)-targeted NK and T-cell product candidates include FT576 to treat multiple myeloma, and FT522, to treat lymphoma and autoimmune disorders. Its CAR T-cell programs include FT819 to treat hematologic malignancies and solid tumors, and FT825 to treat solid tumors. The company has a collaboration and option agreement with Ono Pharmaceutical Co. Ltd. for the development and commercialization of off-the-shelf, iPSC-derived CAR T-cell product candidates for the treatment of cancer. Fate Therapeutics, Inc. was incorporated in 2007 and is headquartered in San Diego, California.

About Mirum Pharmaceuticals

Mirum Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of novel therapies for debilitating rare and orphan diseases. Its lead product candidate is LIVMARLI (maralixibat), an orally administered and minimally absorbed ileal bile acid transporter (IBAT) inhibitor that is approved for the treatment of cholestatic pruritus in patients with Alagille syndrome in the United States and internationally. The company is also involved in the commercialization of Cholbam, a cholic acid capsule, which is approved as treatment for pediatric and adult patients with bile acid synthesis disorders due to single enzyme defects and for adjunctive treatment of patients with peroxisomal disorders, including peroxisome biogenesis disorder-Zellweger spectrum disorder and Smith-Lemli-Opitz syndrome; and Chenodal, a tablet, which is approved for the treatment of radiolucent stones in the gallbladder, and under Phase 3 development for the treatment cerebrotendinous xanthomatosis. In addition, it develops Volixibat, an oral and minimally absorbed agent designed to inhibit IBAT, currently under Phase 2b clinical trial for the treatment of adult patients with cholestatic liver diseases. The company was incorporated in 2018 and is headquartered in Foster City, California.