Immunovant (NASDAQ:IMVT) and SpringWorks Therapeutics (NASDAQ:SWTX) Financial Survey

Immunovant (NASDAQ:IMVT) and SpringWorks Therapeutics (NASDAQ:SWTX) are both mid-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and price targets for Immunovant and SpringWorks Therapeutics, as reported by MarketBeat.

	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 currently has a consensus price target of $49.73, indicating a potential upside of 65.65%. SpringWorks Therapeutics has a consensus price target of $68.50, indicating a potential upside of 120.97%. Given SpringWorks Therapeutics’ higher possible upside, analysts clearly believe SpringWorks Therapeutics is more favorable than Immunovant.

Risk & Volatility

Immunovant has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, SpringWorks Therapeutics has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Insider and Institutional 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Immunovant and SpringWorks Therapeutics”s gross revenue, earnings per share 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)	-15.80
SpringWorks Therapeutics	$86.19 million	26.65	-$325.10 million	($5.14)	-6.03

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.

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%

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.