Radius Health (NASDAQ: RDUS) and Zymeworks (NYSE:ZYME) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.
Insider & Institutional Ownership
7.2% of Zymeworks shares are owned by institutional investors. 15.0% of Radius Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Radius Health and Zymeworks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings for Radius Health and Zymeworks, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Radius Health presently has a consensus target price of $48.00, suggesting a potential upside of 35.71%. Zymeworks has a consensus target price of $16.00, suggesting a potential upside of 68.60%. Given Zymeworks’ higher possible upside, analysts plainly believe Zymeworks is more favorable than Radius Health.
Earnings & Valuation
This table compares Radius Health and Zymeworks’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Radius Health||N/A||N/A||-$182.80 million||($5.43)||-6.51|
|Zymeworks||$11.00 million||21.90||-$33.80 million||($2.27)||-4.18|
Zymeworks has higher revenue and earnings than Radius Health. Radius Health is trading at a lower price-to-earnings ratio than Zymeworks, indicating that it is currently the more affordable of the two stocks.
Zymeworks beats Radius Health on 7 of the 12 factors compared between the two stocks.
Radius Health Company Profile
Radius Health, Inc. is a biopharmaceutical company. The Company is focused on the developing therapeutics in the areas of osteoporosis, oncology and endocrine diseases. The Company’s lead investigational product candidate, TYMLOS (abaloparatide-SC) injection is developed for the treatment of postmenopausal women with osteoporosis at high risk for fracture. The Company’s clinical pipeline also includes an investigational abaloparatide transdermal patch for potential use in osteoporosis and the investigational drug elacestrant (RAD1901) for potential use in hormone-driven and/or hormone-resistant breast cancer, and vasomotor symptoms in postmenopausal women. Its RAD140 is a non-steroidal, selective androgen receptor modulator (SARM). RAD140 is under development for potential use in hormone receptor positive breast cancer.
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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