AstraZeneca (NASDAQ:AZN – Get Free Report) and Mustang Bio (NASDAQ:MBIO – Get Free Report) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.
Volatility and Risk
AstraZeneca has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, Mustang Bio has a beta of 2.14, meaning that its share price is 114% more volatile than the S&P 500.
Profitability
This table compares AstraZeneca and Mustang Bio’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AstraZeneca | 16.17% | 32.89% | 13.00% |
| Mustang Bio | N/A | -75.33% | -16.50% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AstraZeneca | 1 | 0 | 9 | 0 | 2.80 |
| Mustang Bio | 1 | 0 | 0 | 0 | 1.00 |
AstraZeneca currently has a consensus target price of $95.75, suggesting a potential downside of 53.69%. Given AstraZeneca’s stronger consensus rating and higher probable upside, equities analysts plainly believe AstraZeneca is more favorable than Mustang Bio.
Earnings and Valuation
This table compares AstraZeneca and Mustang Bio”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AstraZeneca | $58.74 billion | 5.46 | $7.04 billion | $5.80 | 35.65 |
| Mustang Bio | N/A | N/A | -$15.75 million | ($0.31) | -3.26 |
AstraZeneca has higher revenue and earnings than Mustang Bio. Mustang Bio is trading at a lower price-to-earnings ratio than AstraZeneca, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
20.4% of AstraZeneca shares are owned by institutional investors. Comparatively, 9.9% of Mustang Bio shares are owned by institutional investors. 4.0% of Mustang Bio shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
AstraZeneca beats Mustang Bio on 11 of the 13 factors compared between the two stocks.
About AstraZeneca
AstraZeneca PLC, a biopharmaceutical company, focuses on the discovery, development, manufacture, and commercialization of prescription medicines. The company’s marketed products include Tagrisso, Imfinzi, Lynparza, Calquence, Enhertu, Orpathys, Truqap, Zoladex, Faslodex, Farxiga, Brilinta, Lokelma, Roxadustat, Andexxa, Crestor, Seloken, Onglyza, Bydureon, Fasenra, Breztri, Symbicort, Saphnelo, Tezspire, Pulmicort, Bevespi, and Daliresp for cardiovascular, renal, metabolism, and oncology. Its marketed products also comprise Vaxzevria, Beyfortus, Synagis, FluMist, Soliris, Ultomiris, Strensiq, Koselugo, and Kanuma for covid-19 and rare disease. The company serves primary care and specialty care physicians through distributors and local representative offices in the United Kingdom, rest of Europe, the Americas, Asia, Africa, and Australasia. It has a collaboration agreement with Neurimmune AG to develop and commercialize NI006; BenevolentAI for drug discovery for systemic lupus erythematosus; and Absci Corporation for AI-driven drug discovery against an oncology target. The company was formerly known as Zeneca Group PLC and changed its name to AstraZeneca PLC in April 1999. AstraZeneca PLC was incorporated in 1992 and is headquartered in Cambridge, the United Kingdom.
About Mustang Bio
Mustang Bio, Inc., a clinical-stage biopharmaceutical company, focuses on translating medical breakthroughs in cell and gene therapies into potential cures for hematologic cancers, solid tumors, and rare genetic diseases. Its pipeline focuses on gene therapy programs for rare genetic disorders, chimeric antigen receptor (CAR) engineered T cell (CAR T) therapies for hematologic malignancies, and CAR T therapies for solid tumors. The company develops MB-117 and MB-217, a gene therapy program for X-linked severe combined immunodeficiency, a rare genetic immune system condition in which affected patients do not live beyond infancy without treatment. The company also develops MB-106 CAR T cell program for B cell non-hodgkin lymphoma and chronic lymphocytic leukemia; MB-101 CAR T cell program for glioblastoma; MB-108, a next-generation oncolytic herpes simplex virus. It has license agreements with Nationwide Children's Hospital, CSL Behring; Mayo Clinic; Leiden University Medical Centre; SIRION Biotech GmbH. The company was incorporated in 2015 and is headquartered in Worcester, Massachusetts.
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