Infinity Pharmaceuticals (NASDAQ: INFI) and AEterna Zentaris (NASDAQ:AEZS) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Infinity Pharmaceuticals and AEterna Zentaris, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Infinity Pharmaceuticals 0 1 1 0 2.50
AEterna Zentaris 0 0 3 0 3.00

AEterna Zentaris has a consensus price target of $4.33, suggesting a potential upside of 130.50%. Given AEterna Zentaris’ stronger consensus rating and higher probable upside, analysts clearly believe AEterna Zentaris is more favorable than Infinity Pharmaceuticals.

Profitability

This table compares Infinity Pharmaceuticals and AEterna Zentaris’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Infinity Pharmaceuticals N/A -88.08% -59.20%
AEterna Zentaris -1,945.78% -514.64% -85.79%

Valuation and Earnings

This table compares Infinity Pharmaceuticals and AEterna Zentaris’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Infinity Pharmaceuticals N/A N/A -$55.73 million ($1.40) -1.51
AEterna Zentaris $1.08 million 28.04 -$27.36 million ($1.81) -1.04

AEterna Zentaris has higher revenue and earnings than Infinity Pharmaceuticals. Infinity Pharmaceuticals is trading at a lower price-to-earnings ratio than AEterna Zentaris, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Infinity Pharmaceuticals has a beta of 2.64, indicating that its share price is 164% more volatile than the S&P 500. Comparatively, AEterna Zentaris has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.

Institutional & Insider Ownership

67.2% of Infinity Pharmaceuticals shares are owned by institutional investors. Comparatively, 2.9% of AEterna Zentaris shares are owned by institutional investors. 6.8% of Infinity Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Infinity Pharmaceuticals beats AEterna Zentaris on 7 of the 12 factors compared between the two stocks.

Infinity Pharmaceuticals Company Profile

Infinity Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is engaged in the discovery, development and delivery of medicines to treat diseases. The Company develops small molecule drugs that target disease pathways for potential applications in oncology. Its product candidate is duvelisib, also known as IPI-145, is an oral, dual-inhibitor of the delta and gamma isoforms of phosphoinositide-3-kinase (PI3K), for the treatment of hematologic malignancies, or blood cancers. The Company is also developing IPI-549, which is an orally administered, clinical-stage, immuno-oncology product candidate that selectively inhibits the gamma isoform of PI3K. In addition to duvelisib, the Company focuses to generate new product candidates for potential investigation in oncology. The Company also focuses on developing DYNAMO, CONTEMPO, BRAVURA, FRESCO, DYNAMO+R, DUO, SYNCHRONY and Duvelisib + Venetoclax.

AEterna Zentaris Company Profile

Aeterna Zentaris Inc is a specialty biopharmaceutical company engaged in developing and commercializing treatments in oncology, endocrinology and women’s health. The Company operates through the biopharmaceutical segment. The Company is engaged in drug development activities and in the promotion of products for others. The Company’s principal product candidates are Zoptrex (zoptarelin doxorubicin) and Macrilen (macimorelin) in oncology and endocrinology. The Company focuses on its product candidates Zoptrex and Macrilen, which are in Phase III clinical development, and on a luteinizing hormone-releasing hormone (LHRH)-disorazol Z conjugate (AEZS-138), which is in pre-clinical development in oncology and is available for partnering. The Company’s direct and indirect subsidiaries include AEZS GmbH, Zentaris IVF GmbH and Aeterna Zentaris, Inc.

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