Immunovant (NASDAQ:IMVT – Get Free Report) and SpringWorks Therapeutics (NASDAQ:SWTX – Get Free Report) are both mid-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.
Profitability
This table compares Immunovant and SpringWorks Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Immunovant | N/A | -52.07% | -48.25% |
| SpringWorks Therapeutics | N/A | -56.13% | -48.80% |
Institutional & Insider Ownership
47.1% of Immunovant shares are held by institutional investors. 5.9% of Immunovant shares are held by company insiders. Comparatively, 7.6% of SpringWorks Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Immunovant | 0 | 0 | 11 | 0 | 3.00 |
| SpringWorks Therapeutics | 0 | 0 | 6 | 0 | 3.00 |
Immunovant presently has a consensus target price of $49.09, indicating a potential upside of 60.90%. SpringWorks Therapeutics has a consensus target price of $68.50, indicating a potential upside of 109.87%. Given SpringWorks Therapeutics’ higher probable upside, analysts clearly believe SpringWorks Therapeutics is more favorable than Immunovant.
Risk & Volatility
Immunovant has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, SpringWorks Therapeutics has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.
Valuation & Earnings
This table compares Immunovant and SpringWorks Therapeutics”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Immunovant | N/A | N/A | -$259.34 million | ($1.90) | -16.06 |
| SpringWorks Therapeutics | $5.45 million | 444.80 | -$325.10 million | ($5.14) | -6.35 |
Immunovant has higher earnings, but lower revenue than SpringWorks Therapeutics. Immunovant is trading at a lower price-to-earnings ratio than SpringWorks Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
Immunovant beats SpringWorks Therapeutics on 6 of the 11 factors compared between the two stocks.
About Immunovant
Immunovant, Inc., a clinical-stage biopharmaceutical company, develops monoclonal antibodies for the treatment of autoimmune diseases. It develops batoclimab, a novel fully human monoclonal antibody that target the neonatal fragment crystallizable receptor for the treatment of myasthenia gravis, thyroid eye disease, chronic inflammatory demyelinating polyneuropathy, and Graves diseases, as well as warm autoimmune hemolytic anemia. The company is headquartered in New York, New York. Immunovant, Inc. operates as a subsidiary of Roivant Sciences Ltd.
About SpringWorks Therapeutics
SpringWorks Therapeutics, Inc., a commercial-stage biopharmaceutical company, engages in the development and commercialization of medicines for underserved patient populations suffering from rare diseases and cancer. Its lead product candidate is OGSIVEO (nirogacestat), an oral small molecule gamma secretase inhibitor that is in Phase III DeFi trial for the treatment of desmoid tumors; and Nirogacestat, is also in Phase 2 clinical development as a monotherapy for the treatment of ovarian granulosa cell tumors (GCT), a subtype of ovarian cancer. The company is also involved in the development of mirdametinib, an oral small molecule MEK inhibitor that is in Phase 2b clinical trials for the treatment of neurofibromatosis type 1-associated plexiform neurofibromas (NF1-PN); mirdametinib + lifirafenib, a combination therapy that is in Phase 1b clinical trial in patients with advanced or refractory solid tumors; and mirdametinib in monotherapy and combination approaches to treat other genetically defined solid tumors, including Phase 1/2 clinical trial for the treatment of pediatric and young adult patients with low-grade gliomas. In addition, it develops Brimarafenib (BGB-3245), an oral selective small molecule inhibitor of monomeric and dimeric forms of activating BRAF mutations. The company has collaborations with BeiGene, Ltd. and GlaxoSmithKline LLC; and license agreements with Pfizer Inc. for nirogacestat and mirdametinib. It also has a license agreement with Katholieke Universiteit Leuven and the Flanders Institute for Biotechnology for a portfolio of novel small molecule inhibitors of the TEA Domain; and Dana-Farber Cancer Institute for a portfolio of novel small molecule inhibitors of Epidermal Growth Factor Receptor. The company was founded in 2017 and is headquartered in Stamford, Connecticut.
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