Zymeworks (ZYME) and Zafgen (ZFGN) Financial Contrast

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Zymeworks and Zafgen, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zymeworks 2 0 4 0 2.33
Zafgen 0 1 1 0 2.50

Zymeworks presently has a consensus target price of $16.00, suggesting a potential upside of 55.64%. Zafgen has a consensus target price of $9.00, suggesting a potential upside of 68.22%. Given Zafgen’s stronger consensus rating and higher probable upside, analysts clearly believe Zafgen is more favorable than Zymeworks.

Earnings and Valuation

This table compares Zymeworks and Zafgen’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zymeworks $11.00 million 23.72 -$33.80 million N/A N/A
Zafgen N/A N/A -$57.87 million ($1.80) -2.97

Zymeworks has higher revenue and earnings than Zafgen.

Insider and Institutional Ownership

7.2% of Zymeworks shares are held by institutional investors. Comparatively, 48.6% of Zafgen shares are held by institutional investors. 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 stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Zymeworks -1,387.89% -117.85% -54.48%
Zafgen N/A -46.88% -43.31%

Summary

Zafgen beats Zymeworks on 7 of the 10 factors compared between the two stocks.

About Zymeworks

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.

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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