ADC Therapeutics (NYSE:ADCT) and Galapagos (NASDAQ:GLPG) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.
Institutional and Insider Ownership
48.6% of ADC Therapeutics shares are held by institutional investors. Comparatively, 11.3% of Galapagos shares are held by institutional investors. 2.9% of Galapagos shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of current ratings and price targets for ADC Therapeutics and Galapagos, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ADC Therapeutics presently has a consensus target price of $44.60, suggesting a potential upside of 53.79%. Galapagos has a consensus target price of $103.60, suggesting a potential upside of 91.43%. Given Galapagos’ higher possible upside, analysts clearly believe Galapagos is more favorable than ADC Therapeutics.
Valuation and Earnings
This table compares ADC Therapeutics and Galapagos’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ADC Therapeutics||$2.34 million||853.76||-$246.29 million||($3.77)||-7.69|
|Galapagos||$605.66 million||5.85||-$348.90 million||($5.36)||-10.10|
ADC Therapeutics has higher earnings, but lower revenue than Galapagos. Galapagos is trading at a lower price-to-earnings ratio than ADC Therapeutics, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
ADC Therapeutics has a beta of 2.47, meaning that its share price is 147% more volatile than the S&P 500. Comparatively, Galapagos has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.
This table compares ADC Therapeutics and Galapagos’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
ADC Therapeutics beats Galapagos on 8 of the 13 factors compared between the two stocks.
About ADC Therapeutics
ADC Therapeutics SA, a clinical-stage oncology-focused biotechnology company, develops antibody drug conjugates (ADC) for patients suffering from hematological malignancies and solid tumors. Its lead product candidates are loncastuximab tesirine (ADCT-402), an ADC that is in a Phase II clinical trial for the treatment of relapsed or refractory diffuse large B-cell lymphoma (DLBCL) and follicular lymphoma, and Phase III clinical trial in combination with rituximab to treat relapsed or refractory DLBCL, as well as Phase I/II clinical trial in combination with ibrutinib for relapsed or refractory DLBCL and mantle cell lymphoma; and camidanlumab tesirine (ADCT-301), an ADC that is in a pivotal Phase II clinical trial for the treatment of relapsed or refractory Hodgkin lymphoma and non-Hodgkin lymphoma, and Phase Ib clinical trial for selected advanced solid tumors. The company also develops clinical-stage product candidates, such as ADCT-601 that is in a Phase Ia clinical trial for the treatment of selected advanced tumors; and ADCT-602, and a Phase I/II clinical trial for relapsed or refractory acute lymphoblastic leukemia, as well as preclinical product candidates, including ADCT-701 and ADCT-901 for the treatment of selected advanced solid tumors. It has a collaboration and license agreement with Genmab A/S, Bergenbio AS, and Synaffix B.V. ADC Therapeutics SA was incorporated in 2011 and is headquartered in Epalinges, Switzerland.
Galapagos NV is a biotechnology company, which engages in the identification and development of small molecule and antibody therapies. It operates through the Research & Development and Fee-for-Services segment. The company was founded by Onno van de Stolpe, Rudi Pauwels, and Helmuth van Es on June 30, 1999 and is headquartered in Mechelen, Belgium.
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