Financial Analysis: Astellas Pharma (OTCMKTS:ALPMY) and ADC Therapeutics (NYSE:ADCT)

ADC Therapeutics (NYSE:ADCT) and Astellas Pharma (OTCMKTS:ALPMY) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Insider and Institutional Ownership

41.1% of ADC Therapeutics shares are owned by institutional investors. 4.1% of ADC Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares ADC Therapeutics and Astellas Pharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ADC Therapeutics	-300.00%	N/A	-61.33%
Astellas Pharma	3.26%	10.33%	4.62%

Valuation and Earnings

This table compares ADC Therapeutics and Astellas Pharma”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ADC Therapeutics	$69.56 million	2.70	-$240.05 million	($2.39)	-0.81
Astellas Pharma	$11.11 billion	1.65	$113.00 million	$0.21	48.24

Astellas Pharma has higher revenue and earnings than ADC Therapeutics. ADC Therapeutics is trading at a lower price-to-earnings ratio than Astellas Pharma, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

ADC Therapeutics has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500. Comparatively, Astellas Pharma has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for ADC Therapeutics and Astellas Pharma, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADC Therapeutics	0	0	5	0	3.00
Astellas Pharma	0	0	0	0	0.00

ADC Therapeutics currently has a consensus price target of $8.25, suggesting a potential upside of 325.26%. Given ADC Therapeutics’ stronger consensus rating and higher probable upside, equities research analysts plainly believe ADC Therapeutics is more favorable than Astellas Pharma.

About ADC Therapeutics

ADC Therapeutics SA focuses on advancing its proprietary antibody drug conjugate (ADC) technology platform to transform the treatment paradigm for patients with hematologic malignancies and solid tumors. Its flagship product is ZYNLONTA, a CD19-directed ADC, received accelerated approval from the U.S. Food and Drug Administration and conditional approval from the European Commission for the treatment of relapsed or refractory diffuse large B-cell lymphoma (DLBCL) after two or more lines of systemic therapy. The company is also seeking to continue expanding ZYNLONTA into international markets and into earlier lines of DLBCL and indolent lymphomas, including follicular lymphoma (FL) and marginal zone lymphoma (MZL) as a single agent and in combination through its LOTIS-5 confirmatory Phase 3 clinical trial and LOTIS-7 Phase 1b clinical trial, as well as through investigator-initiated trials (IITs). In addition, it is investigating a CD-22 targeted compound, ADCT-602 that is in a Phase 1/2 investigator-initiated study in relapsed or refractory B-cell acute lymphoblastic leukemia. Further, its clinical-stage pipeline consists of ADCT-601 (mipasetamab uzoptirine) targeting AXL as a single agent and/or in combination in sarcoma, pancreatic, and NSCLC, as well as pre-clinical stage pipeline includes a portfolio of next generation investigational ADCs targeting Claudin-6, NaPi2b, PSMA, and other undisclosed targets. The company was incorporated in 2011 and is headquartered in Epalinges, Switzerland.

About Astellas Pharma

Astellas Pharma Inc. manufactures, markets, and imports and exports pharmaceuticals in Japan and internationally. The company provides XTANDI, a treatment for prostate cancer; XOSPATA, a treatment for patients who have relapsed or refractory acute myeloid leukemia with a FLT3 mutation; and PADCEV, a treatment for patients with metastatic urothelial cancer. It also offers Evrenzo, a treatment for anemia associated with chronic kidney disease; Betanis/Myrabetriq/BETMIGA, a treatment for overactive bladder; and Prograf and Advagraf/Graceptor/ASTAGRAF XL immunosuppressants. Th company has a research collaboration with Vivtex Corporation to evaluate Vivtex’s GI-ORIS screening and formulation platform technology to support the development of novel and oral versions of a therapeutic candidate provided by Astellas; and a partnership agreement with Roche Diabetes Care Japan Co., Ltd. to develop and commercialize integrated diabetes self-management solution. The company was founded in 1923 and is headquartered in Tokyo, Japan.