Atara Biotherapeutics (NASDAQ: ATRA) and MacroGenics (NASDAQ:MGNX) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Volatility and Risk

Atara Biotherapeutics has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, MacroGenics has a beta of 2.73, meaning that its share price is 173% more volatile than the S&P 500.

Insider & Institutional Ownership

85.6% of Atara Biotherapeutics shares are owned by institutional investors. Comparatively, 85.8% of MacroGenics shares are owned by institutional investors. 16.2% of Atara Biotherapeutics shares are owned by company insiders. Comparatively, 8.3% of MacroGenics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Atara Biotherapeutics and MacroGenics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atara Biotherapeutics N/A N/A -$79.04 million ($3.47) -8.14
MacroGenics $91.88 million 8.23 -$58.52 million ($4.49) -4.57

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

Analyst Recommendations

This is a breakdown of recent ratings for Atara Biotherapeutics and MacroGenics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atara Biotherapeutics 0 2 3 0 2.60
MacroGenics 0 2 9 0 2.82

Atara Biotherapeutics presently has a consensus target price of $28.75, indicating a potential upside of 1.77%. MacroGenics has a consensus target price of $31.33, indicating a potential upside of 52.62%. Given MacroGenics’ stronger consensus rating and higher possible upside, analysts clearly believe MacroGenics is more favorable than Atara Biotherapeutics.

Profitability

This table compares Atara Biotherapeutics and MacroGenics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atara Biotherapeutics N/A -44.82% -41.82%
MacroGenics -1,526.55% -69.31% -58.09%

Summary

MacroGenics beats Atara Biotherapeutics on 8 of the 13 factors compared between the two stocks.

Atara Biotherapeutics Company Profile

Atara Biotherapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on developing therapies for patients with severe and life-threatening diseases. The Company operates through the business of developing and commercializing therapeutics segment. The Company is focused on developing allogeneic or third-party derived antigen-specific T-cells. T-cells are a type of white blood cell. The Company’s product candidate, ATA129, is a third-party derived Epstein-Barr virus CTL for the treatment of Epstein-Barr virus (EBV). ATA188 is in development for the treatment of multiple sclerosis. ATA520, which is a third-party donor derived WT1-CTL, targets cancers expressing the antigen Wilms Tumor 1 (WT1). ATA520 is in Phase I clinical trials. The Company’s T-cell product candidate, ATA230, which is a third-party derived cytomegalovirus-CTL (CMV-CTL), is in Phase II clinical trials for refractory CMV.

MacroGenics Company Profile

MacroGenics, Inc. is a clinical-stage biopharmaceutical company focused on discovering and developing monoclonal antibody-based therapeutics for the treatment of cancer, as well as various autoimmune disorders and infectious diseases. The Company develops therapeutic product candidates using its antibody-based technology platforms and also in collaboration with other biopharmaceutical companies. It has a pipeline of product candidates in human clinical testing, primarily as treatments for different types of cancers, which are created using its technology platforms. Its clinical product candidate, margetuximab, has been enhanced using its Fc Optimization platform. The Company is also developing several product candidates targeting B7-H3, a protein in the B7 family of immune regulator proteins. The Company’s product candidates also include enoblituzumab and MGD009, MGC018, MGD006 (flotetuzumab), MGD007, MGD011 (duvortuxizumab), PF-06671008 and MGD010.

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