Financial Review: TRACON Pharmaceuticals (NASDAQ:TCON) versus argenx (NASDAQ:ARGX)


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TRACON Pharmaceuticals (NASDAQ:TCON) and argenx (NASDAQ:ARGX) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Profitability

This table compares TRACON Pharmaceuticals and argenx’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TRACON Pharmaceuticals N/A -562.52% -99.57%
argenx N/A N/A N/A

Earnings & Valuation

This table compares TRACON Pharmaceuticals and argenx’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TRACON Pharmaceuticals $3.00 million 47.44 -$22.67 million ($7.47) -1.39
argenx $78.17 million 165.97 -$182.52 million ($4.73) -57.94

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

Analyst Ratings

This is a summary of current recommendations and price targets for TRACON Pharmaceuticals and argenx, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TRACON Pharmaceuticals 0 0 1 0 3.00
argenx 0 6 13 0 2.68

TRACON Pharmaceuticals currently has a consensus target price of $12.00, indicating a potential upside of 15.38%. argenx has a consensus target price of $261.94, indicating a potential downside of 4.42%. Given TRACON Pharmaceuticals’ stronger consensus rating and higher possible upside, equities research analysts plainly believe TRACON Pharmaceuticals is more favorable than argenx.

Risk & Volatility

TRACON Pharmaceuticals has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, argenx has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Insider and Institutional Ownership

18.3% of TRACON Pharmaceuticals shares are held by institutional investors. Comparatively, 54.2% of argenx shares are held by institutional investors. 23.3% of TRACON Pharmaceuticals shares are held by 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

argenx beats TRACON Pharmaceuticals on 7 of the 13 factors compared between the two stocks.

TRACON Pharmaceuticals Company Profile

TRACON Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, focuses on the development and commercialization of therapeutics for cancer and wet age-related macular degeneration (AMD). Its lead clinical stage products include envafolimab (KN035), an investigational PD-L1 single-domain antibody for the treatment of soft tissue sarcoma. The company's clinical stage products also include DE-122, which is in randomized Phase IIa study for the treatment of wet AMD; TRC102, which is a small molecule that is in Phase II clinical trial for the treatment of mesothelioma, Phase I clinical trial to treat solid tumors, Phase I/II to treat solid tumors and lymphomas, and Phase I trial to treat lung cancer; TRC253, a small molecule, which is in a Phase II clinical trial for the treatment of metastatic castration-resistant prostate cancer; and TJ004309, a CD73 antibody that is in Phase I clinical development for the treatment of solid tumors. It has collaboration and license agreements with 3D Medicines Co., Ltd. and Jiangsu Alphamab Biopharmaceuticals Co., Ltd. for the development of envafolimab; I-Mab Biopharma for the development of CD73 antibody TJ004309; Janssen Pharmaceutica N.V. for the development of TRC253; Santen Pharmaceutical Co. Ltd. for the development of carotuximab products for ophthalmology indications; Roswell Park Cancer Institute and Health Research Inc.; Case Western Reserve University; and cooperative research and development agreement with National Cancer Institute. The company was formerly known as Lexington Pharmaceuticals, Inc. and changed its name to TRACON Pharmaceuticals, Inc. in March 2005. TRACON Pharmaceuticals, Inc. was founded in 2004 and is headquartered in San Diego, California.

argenx Company Profile

argenx SE, a clinical-stage biotechnology company, focuses on developing antibody-based therapies for the treatment of autoimmune diseases, hematology, and cancer. It is developing its lead product candidate, efgartigimod, for the treatment of patients with myasthenia gravis in Phase 3; immune thrombocytopenia in Phase 3; pemphigus vulgaris in Phase 2; chronic inflammatory demyelinating polyneuropathy in Phase 2; and ENHANZE SC in pre-clinical stages. The company is also developing cusatuzumab in Phase 2 clinical stage in hematological cancer indications; and preclinical products, including ARGX-117 with therapeutic potential in both orphan and large autoimmune inflammatory diseases in and ARGX-118 for airway inflammation. Its partnered product candidates include ARGX-112 for treating skin inflammation and ARGX-115 for cancer immunotherapy, which are in Phase 1 clinical stages; and ARGX-116 for the treatment of dyslipidemia and ARGX-114 for treating fibrosis, which are in preclinical stage. The company has strategic partnership with AbbVie S.Ã.R.L. and LEO Pharma A/S; and collaboration agreement with Cilag GmbH International, Staten Biotechnology B.V., and Shire International GmbH. argenx SE was founded in 2008 and is based in Breda, the Netherlands.

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