ADC Therapeutics (NYSE:ADCT – Get Free Report) and Astellas Pharma (OTCMKTS:ALPMY – Get Free Report) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.
Volatility and Risk
ADC Therapeutics has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500. Comparatively, Astellas Pharma has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for ADC Therapeutics and Astellas Pharma, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ADC Therapeutics | 0 | 0 | 5 | 0 | 3.00 |
| Astellas Pharma | 0 | 0 | 0 | 0 | 0.00 |
Valuation and Earnings
This table compares ADC Therapeutics and Astellas Pharma”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ADC Therapeutics | $70.72 million | 3.27 | -$240.05 million | ($2.39) | -1.00 |
| Astellas Pharma | $11.11 billion | 1.74 | $113.00 million | $0.21 | 50.95 |
Astellas Pharma has higher revenue and earnings than ADC Therapeutics. ADC Therapeutics is trading at a lower price-to-earnings ratio than Astellas Pharma, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ADC Therapeutics and Astellas Pharma’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ADC Therapeutics | -300.00% | N/A | -61.33% |
| Astellas Pharma | 3.26% | 10.33% | 4.62% |
Insider and Institutional Ownership
41.1% of ADC Therapeutics shares are held by institutional investors. 4.1% of ADC Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
About ADC Therapeutics
ADC Therapeutics SA focuses on advancing its proprietary antibody drug conjugate (ADC) technology platform to transform the treatment paradigm for patients with hematologic malignancies and solid tumors. Its flagship product is ZYNLONTA, a CD19-directed ADC, received accelerated approval from the U.S. Food and Drug Administration and conditional approval from the European Commission for the treatment of relapsed or refractory diffuse large B-cell lymphoma (DLBCL) after two or more lines of systemic therapy. The company is also seeking to continue expanding ZYNLONTA into international markets and into earlier lines of DLBCL and indolent lymphomas, including follicular lymphoma (FL) and marginal zone lymphoma (MZL) as a single agent and in combination through its LOTIS-5 confirmatory Phase 3 clinical trial and LOTIS-7 Phase 1b clinical trial, as well as through investigator-initiated trials (IITs). In addition, it is investigating a CD-22 targeted compound, ADCT-602 that is in a Phase 1/2 investigator-initiated study in relapsed or refractory B-cell acute lymphoblastic leukemia. Further, its clinical-stage pipeline consists of ADCT-601 (mipasetamab uzoptirine) targeting AXL as a single agent and/or in combination in sarcoma, pancreatic, and NSCLC, as well as pre-clinical stage pipeline includes a portfolio of next generation investigational ADCs targeting Claudin-6, NaPi2b, PSMA, and other undisclosed targets. The company was incorporated in 2011 and is headquartered in Epalinges, Switzerland.
About Astellas Pharma
Astellas Pharma Inc. manufactures, markets, and imports and exports pharmaceuticals in Japan and internationally. The company provides XTANDI, a treatment for prostate cancer; XOSPATA, a treatment for patients who have relapsed or refractory acute myeloid leukemia with a FLT3 mutation; and PADCEV, a treatment for patients with metastatic urothelial cancer. It also offers Evrenzo, a treatment for anemia associated with chronic kidney disease; Betanis/Myrabetriq/BETMIGA, a treatment for overactive bladder; and Prograf and Advagraf/Graceptor/ASTAGRAF XL immunosuppressants. Th company has a research collaboration with Vivtex Corporation to evaluate Vivtex’s GI-ORIS screening and formulation platform technology to support the development of novel and oral versions of a therapeutic candidate provided by Astellas; and a partnership agreement with Roche Diabetes Care Japan Co., Ltd. to develop and commercialize integrated diabetes self-management solution. The company was founded in 1923 and is headquartered in Tokyo, Japan.
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