Zafgen (NASDAQ: ZFGN) is one of 296 public companies in the “Bio Therapeutic Drugs” industry, but how does it weigh in compared to its competitors? We will compare Zafgen to related businesses based on the strength of its valuation, institutional ownership, earnings, dividends, analyst recommendations, profitability and risk.

Profitability

This table compares Zafgen and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zafgen N/A -44.54% -40.97%
Zafgen Competitors -5,489.25% -451.68% -42.65%

Insider & Institutional Ownership

48.5% of Zafgen shares are owned by institutional investors. Comparatively, 50.4% of shares of all “Bio Therapeutic Drugs” companies are owned by institutional investors. 21.2% of Zafgen shares are owned by company insiders. Comparatively, 16.4% of shares of all “Bio Therapeutic Drugs” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Zafgen has a beta of -1.36, meaning that its share price is 236% less volatile than the S&P 500. Comparatively, Zafgen’s competitors have a beta of 6.62, meaning that their average share price is 562% more volatile than the S&P 500.

Valuation and Earnings

This table compares Zafgen and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Zafgen N/A -$50.51 million -1.85
Zafgen Competitors $260.16 million $66.28 million -6.28

Zafgen’s competitors have higher revenue and earnings than Zafgen. Zafgen is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations for Zafgen and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zafgen 0 1 1 0 2.50
Zafgen Competitors 765 3040 11220 227 2.72

Zafgen presently has a consensus target price of $9.00, indicating a potential upside of 157.14%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 37.05%. Given Zafgen’s higher possible upside, analysts clearly believe Zafgen is more favorable than its competitors.

Summary

Zafgen competitors beat Zafgen on 7 of the 12 factors compared.

About Zafgen

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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