Coherus BioSciences (NASDAQ: CHRS) and Zafgen (NASDAQ:ZFGN) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Institutional and Insider Ownership

78.2% of Coherus BioSciences shares are held by institutional investors. Comparatively, 48.5% of Zafgen shares are held by institutional investors. 26.3% of Coherus BioSciences shares are held by insiders. Comparatively, 21.2% of Zafgen shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Coherus BioSciences and Zafgen, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coherus BioSciences 0 0 9 0 3.00
Zafgen 0 1 1 0 2.50

Coherus BioSciences presently has a consensus target price of $34.78, suggesting a potential upside of 169.60%. Zafgen has a consensus target price of $9.00, suggesting a potential upside of 157.88%. Given Coherus BioSciences’ stronger consensus rating and higher probable upside, equities analysts plainly believe Coherus BioSciences is more favorable than Zafgen.

Risk & Volatility

Coherus BioSciences has a beta of 4.32, suggesting that its share price is 332% more volatile than the S&P 500. Comparatively, Zafgen has a beta of -1.36, suggesting that its share price is 236% less volatile than the S&P 500.

Profitability

This table compares Coherus BioSciences and Zafgen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Coherus BioSciences -73.89% -307.41% -63.38%
Zafgen N/A -44.54% -40.97%

Valuation and Earnings

This table compares Coherus BioSciences and Zafgen’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Coherus BioSciences $165.24 million 4.01 -$111.05 million ($2.66) -4.85
Zafgen N/A N/A -$50.51 million ($1.89) -1.85

Zafgen has higher revenue, but lower earnings than Coherus BioSciences. Coherus BioSciences is trading at a lower price-to-earnings ratio than Zafgen, indicating that it is currently the more affordable of the two stocks.

Summary

Coherus BioSciences beats Zafgen on 7 of the 12 factors compared between the two stocks.

Coherus BioSciences Company Profile

Coherus BioSciences, Inc. is a late-stage clinical biologics platform company. The Company is engaged in the business of developing and commercializing biosimilar products. The Company’s business is organized around therapeutic franchises, including Oncology biosimilar candidates pegfilgrastim (Neulasta) and bevacizumab (Avastin); Immunology (Anti-TNF) biosimilar candidates etanercept (Enbrel) and adalimumab (Humira); Ophthalmology biosimilar candidate ranibizumab (Lucentis), and Multiple sclerosis small molecule therapeutic candidate, CHS-131. The Company’s product candidate pipeline includes CHS-1701, CHS-5217, CHS-0214, CHS-1420 and CHS-3351. Its CHS-1701 is a Granulocyte colony-stimulating factor (G-CSF) product candidate. Its Bevacizumab is a recombinant humanized monoclonal antibody that blocks angiogenesis by inhibiting vascular endothelial growth factor A (VEGF-A). Its Etanercept (Enbrel) is the reference product for CHS-0214.

Zafgen Company Profile

Zafgen, Inc. is a biopharmaceutical company. The Company is focused on improving the health and well-being of patients affected by obesity and complex metabolic disorders. The Company’s lead product candidate, Beloranib, is a twice-weekly subcutaneous injection being developed for the treatment of multiple indications, including severe obesity in rare diseases, such as Prader-Willi syndrome (PWS) and hypothalamic injury-associated obesity (HIAO), including craniopharyngioma-associated obesity. Beloranib is in Phase III stage of development for PWS. It is also developing ZGN-839, a liver-targeted methionine aminopeptidase 2 (MetAP2) inhibitor, for the treatment of nonalcoholic steatohepatitis (NASH) and abdominal obesity, as well as other second-generation MetAP2 inhibitors for the treatment of severe obesity. It is also evaluating additional MetAP2 inhibitors beyond Beloranib as a development candidate for the treatment of severe obesity in the general population.

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