Financial Review: Mirum Pharmaceuticals (NASDAQ:MIRM) versus Fate Therapeutics (NASDAQ:FATE)

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

Risk & Volatility

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

Profitability

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

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

Insider and Institutional Ownership

97.5% of Fate Therapeutics shares are held by institutional investors. 8.3% of Mirum Pharmaceuticals shares are held by company insiders. Comparatively, 4.7% of Fate Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

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

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

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.

Analyst Ratings

This is a summary of current ratings and price targets for Mirum Pharmaceuticals and Fate Therapeutics, as provided by MarketBeat.

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

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

Summary

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

About Mirum Pharmaceuticals

(Get Free Report)

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.

About Fate Therapeutics

(Get Free Report)

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.

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