Affimed (NASDAQ: AFMD) and Zymeworks (NYSE:ZYME) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.

Institutional & Insider Ownership

40.5% of Affimed shares are owned by institutional investors. Comparatively, 7.2% of Zymeworks shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Affimed and Zymeworks’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Affimed $6.88 million 12.66 -$35.65 million ($0.78) -2.50
Zymeworks $11.00 million 18.92 -$33.80 million N/A N/A

Zymeworks has higher revenue and earnings than Affimed.

Profitability

This table compares Affimed and Zymeworks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Affimed -1,074.37% -72.94% -57.13%
Zymeworks -1,387.89% -117.85% -54.48%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Affimed and Zymeworks, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Affimed 0 2 1 0 2.33
Zymeworks 2 0 4 0 2.33

Affimed currently has a consensus price target of $6.50, suggesting a potential upside of 233.33%. Zymeworks has a consensus price target of $16.00, suggesting a potential upside of 95.12%. Given Affimed’s higher possible upside, equities analysts plainly believe Affimed is more favorable than Zymeworks.

Summary

Zymeworks beats Affimed on 5 of the 9 factors compared between the two stocks.

Affimed Company Profile

Affimed N.V. is a clinical-stage biopharmaceutical company focused on discovering and developing cancer immunotherapies. The Company’s product candidates are developed in the field of immuno-oncology, which represents an approach to cancer research that seeks to harness the body’s own immune system to fight tumor cells. Its pipeline includes FM13, AFM11, AFM21, AFM22, AFM24, TandAb and Trispecific Abs. It has started recruitment for Phase IIa clinical trial of AFM13 in patients with Hodgkin Lymphoma. It has initiated a Phase I clinical trial of AFM11 in patients with non-Hodgkin Lymphoma. AFM21 is in preclinical development. AFM22, which is an Epidermal Growth Factor Receptor variant III (EGFRvIII)/CD16A NK-cell TandAb is in preclinical development. AFM24 is an additional CD16A NK-cell TandAb targeting a validated solid tumor target, EGFR-wild type. It is developing Trispecific Abs for treating multiple myeloma, and CD33/CD3-specific T-cell TandAb to treat acute myeloid leukemia.

Zymeworks Company Profile

Zymeworks Inc is a Canada-based clinical-stage biopharmaceutical company. The Company focuses on the discovery, development and commercialization of multifunctional biotherapeutics. The Company’s ZymeCAD platform is for protein modeling and structure-guided protein engineering. The Company’s platforms include Azymetric Platform, AlbuCORE Platform, EFECT Platform and Zymelink Conjugation Platform + Cytotoxins. The Company’s lead product candidate, ZW25, is a bispecific antibody, which is being evaluated in an adaptive Phase I clinical trial. Its ZW33 is a bi-specific antibody that delivers a cytotoxic payload to cancers cells by binding to different epitopes (bi-paratopic targeting) of the overexpressed HER2 protein. It focuses on developing a pipeline of preclinical product candidates and discovery-stage programs in immuno-oncology and other therapeutic areas. It analyzes protein characteristics to develop the scope of protein engineering to tackle biological systems.

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