Generex Biotechnology (OTCMKTS:GNBT) vs. ADC Therapeutics (NYSE:ADCT) Critical Review

Generex Biotechnology (OTCMKTS:GNBT) and ADC Therapeutics (NYSE:ADCT) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Insider & Institutional Ownership

41.1% of ADC Therapeutics shares are held by institutional investors. 35.2% of Generex Biotechnology shares are held by company insiders. Comparatively, 35.4% of ADC Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for Generex Biotechnology and ADC Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Generex Biotechnology	0	0	0	0	N/A
ADC Therapeutics	1	2	3	0	2.33

ADC Therapeutics has a consensus price target of $7.50, indicating a potential upside of 57.23%.

Profitability

This table compares Generex Biotechnology and ADC Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Generex Biotechnology	N/A	N/A	N/A
ADC Therapeutics	-344.15%	-1,313.37%	-53.29%

Volatility and Risk

Generex Biotechnology has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500. Comparatively, ADC Therapeutics has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500.

Earnings & Valuation

This table compares Generex Biotechnology and ADC Therapeutics’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Generex Biotechnology	$2.66 million	0.00	-$33.33 million	N/A	N/A
ADC Therapeutics	$69.56 million	5.66	-$240.05 million	($2.93)	-1.63

Generex Biotechnology has higher earnings, but lower revenue than ADC Therapeutics.

Summary

ADC Therapeutics beats Generex Biotechnology on 5 of the 9 factors compared between the two stocks.

About Generex Biotechnology

Generex Biotechnology Corporation, through its subsidiaries, engages in the administration of formulations of large molecule drugs to the oral cavity using a hand-held aerosol applicator in Canada and the United States. It offers Generex Oral-lyn, an oral insulin product. The company is also developing AE37, a synthetic peptide vaccine, which has completed Phase IIb clinical trial to stimulate a potent and specific immune response against tumors expressing the HER-2/neu oncogene in patients with breast cancer and prostate cancer. In addition, it develops, manufactures, and distributes rapid point-of-care in-vitro medical diagnostics for infectious diseases, such as human immunodeficiency virus, tuberculosis, malaria, hepatitis B, hepatitis C, syphilis, and others; and test kits and cassettes for testing infectious diseases, as well as Excellagen, a wound conforming gel. Further, the company is developing immunotherapeutic products and vaccines; and extracellular matrix hydrogel solution, a tissue engineered therapy for the treatment of Ulcerative Colitis. Additionally, it manufactures and sells foot and ankle surgical kits that include plates, screws, and tools; and distributes surgical supplies, orthopedic implants, artificial joints, and biologics, medical devices, and regenerative medicine products. It also serves as the general partner of the Management Services Organization. Generex Biotechnology Corporation was founded in 1983 and is headquartered in Miramar, Florida. On April 23, 2022, an involuntary petition for liquidation under Chapter 7 was filed against Generex Biotechnology Corporation in the U.S. Bankruptcy Court for the Southern District of Florida. On June 6, 2022, the involuntary petition was approved by the Court.

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.