MacroGenics (NASDAQ: MGNX) and Jounce Therapeutics (NASDAQ:JNCE) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

83.2% of MacroGenics shares are held by institutional investors. Comparatively, 47.3% of Jounce Therapeutics shares are held by institutional investors. 8.3% of MacroGenics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares MacroGenics and Jounce Therapeutics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MacroGenics $91.88 million 9.56 -$58.52 million ($4.49) -5.31
Jounce Therapeutics $37.20 million 20.97 -$13.70 million ($0.21) -115.19

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

Profitability

This table compares MacroGenics and Jounce Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MacroGenics -1,526.55% -69.31% -58.09%
Jounce Therapeutics -2.03% -1.39% -0.50%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for MacroGenics and Jounce Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MacroGenics 0 2 9 0 2.82
Jounce Therapeutics 0 0 4 0 3.00

MacroGenics currently has a consensus price target of $31.89, indicating a potential upside of 33.71%. Jounce Therapeutics has a consensus price target of $29.00, indicating a potential upside of 19.88%. Given MacroGenics’ higher possible upside, equities research analysts plainly believe MacroGenics is more favorable than Jounce Therapeutics.

Summary

Jounce Therapeutics beats MacroGenics on 7 of the 13 factors compared between the two stocks.

About MacroGenics

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.

About Jounce Therapeutics

Jounce Therapeutics, Inc. is a clinical stage immunotherapy company. The Company is engaged in transforming the treatment of cancer by developing therapies that enable the immune system to attack tumors and provide long lasting benefits to patients. Through the use of its Translational Science Platform, Jounce first focuses on specific cell types within tumors to prioritize targets, and then identifies related biomarkers designed to match the right therapy to the right patient. The Company’s lead product candidate, JTX-2011, is a monoclonal antibody that binds to and activates Inducible T cell CO-Stimulator (ICOS) and is in a Phase II trial.

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