Epizyme (NASDAQ: EPZM) and Nantkwest (NASDAQ:NK) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Valuation and Earnings

This table compares Epizyme and Nantkwest’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Epizyme $8.01 million 114.60 -$110.21 million ($2.27) -5.84
Nantkwest $40,000.00 9,833.18 -$120.80 million ($1.18) -4.19

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Epizyme and Nantkwest, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Epizyme 0 1 9 0 2.90
Nantkwest 1 2 1 0 2.00

Epizyme currently has a consensus target price of $23.00, suggesting a potential upside of 73.58%. Nantkwest has a consensus target price of $5.33, suggesting a potential upside of 7.74%. Given Epizyme’s stronger consensus rating and higher probable upside, analysts clearly believe Epizyme is more favorable than Nantkwest.

Profitability

This table compares Epizyme and Nantkwest’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Epizyme N/A -67.04% -53.15%
Nantkwest -204,606.36% -36.21% -32.04%

Insider & Institutional Ownership

85.3% of Epizyme shares are owned by institutional investors. Comparatively, 19.1% of Nantkwest shares are owned by institutional investors. 25.2% of Epizyme shares are owned by company insiders. Comparatively, 70.2% of Nantkwest shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Epizyme beats Nantkwest on 7 of the 12 factors compared between the two stocks.

Epizyme Company Profile

Epizyme, Inc. is a clinical-stage biopharmaceutical company. The Company discovers, develops and plans to commercialize epigenetic therapies for cancer patients. The Company is engaged in the discovery and development of novel epigenetic therapies for cancer patients. The Company develops small molecule inhibitors of a class of enzymes known as histone methyltransferases (HMTs). The Company develops small molecule inhibitors of other chromatin modifying proteins (CMPs). The Company’s lead product candidate, tazemetostat, is a potent and selective inhibitor of the enhancer of zeste homolog 2 (EZH2) histone methyltransferases (HMT), an enzyme that plays an important role in various cancers. The Company is evaluating tazemetostat in a Phase II study in adults with relapsed or refractory non-Hodgkin lymphoma (NHL), and one Phase I study in children with molecularly defined solid tumors. The Company owns the global development and commercialization rights to tazemetostat outside of Japan.

Nantkwest Company Profile

NantKwest, Inc. is a clinical-stage immunotherapy company. The Company is focused on harnessing the power of the innate immune system by using the natural killer cell to treat cancer, infectious diseases and inflammatory diseases. Its immuno-oncology NK platform has multiple modes to induce cell death against the tumor or infected cell by direct killing by binding to stress ligands expressed by the diseased cell with the release of toxic granules directly into the tumor cell; antibody mediated killing by binding to antibodies administered in combination and enhancing the cancer killing effect of the administered antibody, enabling targeted cell killing through antibody dependent cellular cytotoxicity (ADCC), and target activated killing by binding to known or newly discovered tumor-specific antigens expressed on the surface of tumor cells and inducing cell death by the release of toxic granules directly into the tumor cell and by the release of cytokines and chemokines.

Receive News & Ratings for Epizyme Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Epizyme Inc. and related companies with MarketBeat.com's FREE daily email newsletter.