Xilio Therapeutics (NASDAQ:XLO) & Madrigal Pharmaceuticals (NASDAQ:MDGL) Head-To-Head Survey

Xilio Therapeutics (NASDAQ:XLO) and Madrigal Pharmaceuticals (NASDAQ:MDGL) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Risk and Volatility

Xilio Therapeutics has a beta of -0.38, suggesting that its stock price is 138% less volatile than the S&P 500. Comparatively, Madrigal Pharmaceuticals has a beta of -0.41, suggesting that its stock price is 141% less volatile than the S&P 500.

Valuation & Earnings

This table compares Xilio Therapeutics and Madrigal Pharmaceuticals”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xilio Therapeutics	$4.62 million	7.61	-$76.40 million	($1.72)	-0.47
Madrigal Pharmaceuticals	$180.13 million	42.70	-$373.63 million	($22.11)	-15.76

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Xilio Therapeutics and Madrigal Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xilio Therapeutics	0	0	1	0	3.00
Madrigal Pharmaceuticals	1	1	7	1	2.80

Xilio Therapeutics currently has a consensus target price of $4.00, indicating a potential upside of 399.88%. Madrigal Pharmaceuticals has a consensus target price of $378.44, indicating a potential upside of 8.64%. Given Xilio Therapeutics’ stronger consensus rating and higher possible upside, research analysts plainly believe Xilio Therapeutics is more favorable than Madrigal Pharmaceuticals.

Profitability

This table compares Xilio Therapeutics and Madrigal Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xilio Therapeutics	N/A	-211.50%	-80.31%
Madrigal Pharmaceuticals	N/A	-71.78%	-53.25%

Insider and Institutional Ownership

54.3% of Xilio Therapeutics shares are owned by institutional investors. Comparatively, 98.5% of Madrigal Pharmaceuticals shares are owned by institutional investors. 5.2% of Xilio Therapeutics shares are owned by insiders. Comparatively, 22.8% of Madrigal Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Madrigal Pharmaceuticals beats Xilio Therapeutics on 8 of the 14 factors compared between the two stocks.

About Xilio Therapeutics

Xilio Therapeutics, Inc., a clinical-stage biotechnology company, engages in the discovery and development of tumor-activated immuno-oncology therapies. The company’s checkpoint inhibitor program includes XTX101, an investigational Fc-enhanced, tumor-activated anti-CTLA-4 mAb that is in Phase 2 clinical trial for patients with advanced solid tumors. It also develops cytokine programs, which comprises XTX202, a tumor-activated beta-gamma biased IL-2, currently under Phase 2 clinal trials; and XTX301, an investigational tumor-activated, engineered IL-12 molecule, currently under Phase 1 studies. The company was founded in 2016 and is headquartered in Waltham, Massachusetts.

About Madrigal Pharmaceuticals

Madrigal Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development of therapeutics for the treatment of non-alcoholic steatohepatitis (NASH) in the United States. Its lead product candidate is resmetirom, a liver-directed thyroid hormone receptor beta agonist, which is in Phase 3 clinical trials for treating NASH. The company is headquartered in West Conshohocken, Pennsylvania.