Head to Head Review: Zymeworks (NASDAQ:ZYME) versus Generex Biotechnology (OTCMKTS:GNBT)

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

Earnings & Valuation

This table compares Generex Biotechnology and Zymeworks”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Generex Biotechnology	$2.66 million	0.00	-$33.33 million	N/A	N/A
Zymeworks	$76.30 million	22.29	-$122.69 million	($0.84)	-27.05

Generex Biotechnology has higher earnings, but lower revenue than Zymeworks.

Volatility & Risk

Generex Biotechnology has a beta of -0.07, indicating that its share price is 107% less volatile than the S&P 500. Comparatively, Zymeworks has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Generex Biotechnology and Zymeworks, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Generex Biotechnology	0	0	0	0	0.00
Zymeworks	1	1	1	4	3.14

Zymeworks has a consensus target price of $33.00, suggesting a potential upside of 45.25%. Given Zymeworks’ stronger consensus rating and higher probable upside, analysts clearly believe Zymeworks is more favorable than Generex Biotechnology.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Generex Biotechnology	N/A	N/A	N/A
Zymeworks	-47.16%	-19.25%	-14.97%

Insider and Institutional Ownership

92.9% of Zymeworks shares are held by institutional investors. 35.2% of Generex Biotechnology shares are held by company insiders. Comparatively, 33.5% of Zymeworks shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Zymeworks beats Generex Biotechnology on 7 of the 12 factors compared between the two stocks.

About Generex Biotechnology

Generex Biotechnology Corporation, through its subsidiaries, engages in the administration of formulations of large molecule drugs to the oral cavity using a hand-held aerosol applicator in Canada and the United States. It offers Generex Oral-lyn, an oral insulin product. The company is also developing AE37, a synthetic peptide vaccine, which has completed Phase IIb clinical trial to stimulate a potent and specific immune response against tumors expressing the HER-2/neu oncogene in patients with breast cancer and prostate cancer. In addition, it develops, manufactures, and distributes rapid point-of-care in-vitro medical diagnostics for infectious diseases, such as human immunodeficiency virus, tuberculosis, malaria, hepatitis B, hepatitis C, syphilis, and others; and test kits and cassettes for testing infectious diseases, as well as Excellagen, a wound conforming gel. Further, the company is developing immunotherapeutic products and vaccines; and extracellular matrix hydrogel solution, a tissue engineered therapy for the treatment of Ulcerative Colitis. Additionally, it manufactures and sells foot and ankle surgical kits that include plates, screws, and tools; and distributes surgical supplies, orthopedic implants, artificial joints, and biologics, medical devices, and regenerative medicine products. It also serves as the general partner of the Management Services Organization. Generex Biotechnology Corporation was founded in 1983 and is headquartered in Miramar, Florida. On April 23, 2022, an involuntary petition for liquidation under Chapter 7 was filed against Generex Biotechnology Corporation in the U.S. Bankruptcy Court for the Southern District of Florida. On June 6, 2022, the involuntary petition was approved by the Court.

About Zymeworks

Zymeworks Inc., a clinical-stage biopharmaceutical company, discovers, develops, and commercializes biotherapeutics for the treatment of cancer. The company’s lead product candidates include zanidatamab, a novel bispecific antibody that is in Phase 1 and Phase 2 clinical trials for the treatment of biliary tract, gastroesophageal adenocarcinomas, and breast cancer; and ZW49, a biparatopic anti- human epidermal growth factor receptor 2 (HER2) antibody-drug conjugate that is in Phase 1 clinical trial for the treatment of advanced or metastatic HER2-expressing tumors. The company has strategic partnerships with Merck Sharp & Dohme Research Ltd.; Eli Lilly and Company; Bristol-Myers Squibb company; GlaxoSmithKline Intellectual Property Development Ltd.; Daiichi Sankyo Co., Ltd.; Janssen Biotech, Inc.; and BeiGene, Ltd. It also has licensing and research collaboration with LEO Pharma A/S to discover and develop bispecific antibodies; and Iconic Therapeutics, Inc. Zymeworks Inc. was founded in 2003 and is headquartered in Vancouver, Canada.