Critical Comparison: Medicus Pharma (NASDAQ:MDCX) & Merck KGaA (OTCMKTS:MKKGY)

Medicus Pharma (NASDAQ:MDCX) and Merck KGaA (OTCMKTS:MKKGY) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Valuation and Earnings

This table compares Medicus Pharma and Merck KGaA”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medicus Pharma	N/A	N/A	N/A	N/A	N/A
Merck KGaA	$22.72 billion	0.82	$3.06 billion	$1.62	17.81

Merck KGaA has higher revenue and earnings than Medicus Pharma.

Profitability

This table compares Medicus Pharma and Merck KGaA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medicus Pharma	N/A	N/A	N/A
Merck KGaA	12.89%	10.41%	5.88%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Medicus Pharma and Merck KGaA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medicus Pharma	0	0	1	1	3.50
Merck KGaA	0	0	1	0	3.00

Medicus Pharma presently has a consensus target price of $10.00, indicating a potential upside of 278.79%. Given Medicus Pharma’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Medicus Pharma is more favorable than Merck KGaA.

Institutional and Insider Ownership

0.1% of Merck KGaA shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Merck KGaA beats Medicus Pharma on 5 of the 8 factors compared between the two stocks.

About Medicus Pharma

Medicus Pharma Ltd is a biotech/life sciences company focused on accelerating the clinical development programs of novel and disruptive therapeutics assets. Medicus Pharma Ltd is based in Toronto, Ontario.

About Merck KGaA

Merck KGaA operates as a science and technology company in Germany. It operates through Life Science, Healthcare, and Electronics segments. The company’s Life Science segment offers tools, chemicals, and equipment for academic labs, biotech, and pharmaceutical manufacturers, as well as industrial sector. This segment provides drug manufacturers with process development expertise and technologies, such as continuous bioprocessing; testing kits and services; reagents and services; testing solutions that analyze air, water, and soil; and testing and tools, as well as products that help test nutritional value and identify quality inconsistencies. Its Healthcare segment discovers, develops, manufacturers, and markets prescription drugs and biopharmaceuticals for the treatment of oncology, neurology and immunology, fertility, endocrinology, as well as cardiovascular, diabetes, thyroid disorders, and multiple sclerosis; general medicines; and injection device and disease monitoring software. The Electronics segment supplies materials for the semiconductor and display industries and surface design, such as delivery systems and services, as well as surface solutions, including cosmetics, effect pigments, and functional solutions. In addition, it has in-licensing agreement with Debiopharm International SA for developing and commercializing drug candidates for the treatment of head and neck cancer; Jiangsu Hengrui Pharmaceuticals Co. Ltd. for developing, manufacturing, and commercializing drug candidates for the treatment of metastatic colorectal cancer; and Abbisko Therapeutics Co. Ltd. for developing and commercializing of drug candidates for the treatment of tenosynovial giant cell tumor, as well as license and collaboration agreement with Merck KGaA to discover two targeted protein degraders against critical oncogenic proteins. The company was founded in 1668 and is headquartered in Darmstadt, Germany. Merck KGaA operates as a subsidiary of E. Merck KGaA.