Zymeworks (NYSE:ZYME – Get Free Report) and Arcturus Therapeutics (NASDAQ:ARCT – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
Earnings & Valuation
This table compares Zymeworks and Arcturus Therapeutics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zymeworks | $62.20 million | 15.66 | -$118.67 million | ($1.50) | -9.43 |
| Arcturus Therapeutics | $142.47 million | 3.14 | -$29.73 million | ($2.22) | -7.45 |
Arcturus Therapeutics has higher revenue and earnings than Zymeworks. Zymeworks is trading at a lower price-to-earnings ratio than Arcturus Therapeutics, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Analyst Recommendations
This is a breakdown of recent recommendations for Zymeworks and Arcturus Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zymeworks | 0 | 2 | 4 | 1 | 2.86 |
| Arcturus Therapeutics | 0 | 0 | 6 | 1 | 3.14 |
Zymeworks currently has a consensus price target of $19.17, suggesting a potential upside of 35.55%. Arcturus Therapeutics has a consensus price target of $66.75, suggesting a potential upside of 303.81%. Given Arcturus Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Arcturus Therapeutics is more favorable than Zymeworks.
Profitability
This table compares Zymeworks and Arcturus Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zymeworks | -182.75% | -23.00% | -18.04% |
| Arcturus Therapeutics | -36.39% | -22.39% | -14.81% |
Institutional & Insider Ownership
92.9% of Zymeworks shares are owned by institutional investors. Comparatively, 94.5% of Arcturus Therapeutics shares are owned by institutional investors. 1.9% of Zymeworks shares are owned by insiders. Comparatively, 15.3% of Arcturus Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Arcturus Therapeutics beats Zymeworks on 12 of the 14 factors compared between the two stocks.
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 human epidermal growth factor receptor 2 (HER2) that is in Phase 1, Phase 2, and Phase 3 clinical trials, including certain ongoing pivotal clinical trials; and zanidatamab zovodotin, a HER2 -targeted antibody-drug conjugate that is in Phase 2 clinical trial for the treatment of advanced or metastatic HER2-expressing tumors. It also develops a pipeline of preclinical product candidates and discovery-stage programs in oncology, including immuno-oncology agents and other therapeutic areas. Zymeworks Inc. has strategic partnerships and collaborations with BeiGene, Ltd.; Celgene Corporation; Celgene Alpine Investment Co. LLC; GlaxoSmithKline Intellectual Property Development Limited; Daiichi Sankyo Co., Ltd.; Janssen Biotech, Inc.; LEO Pharma A/S; Iconic Therapeutics, Inc.; Merck Sharp & Dohme Research GmbH; and Atreca, Inc. Zymeworks Inc. was incorporated in 2003 and is based in Middletown, Delaware.
About Arcturus Therapeutics
Arcturus Therapeutics Holdings Inc., a late-stage clinical messenger RNA medicines and vaccine company, focuses on the development of infectious disease vaccines and other products within liver and respiratory rare diseases. Its technology platforms include LUNAR lipid-mediated delivery and STARR mRNA. The company is developing ARCT-810 (LUNAR-OTC), a mRNA-based therapeutic candidate, which is in Phase 2 clinical trial for treating ornithine transcarbamylase deficiency; and ARCT-154 (LUNAR-COV19), a mRNA vaccine candidate that is in Phase 3 arm of a Phase 1/2/3 study in Vietnam for the treatment of COVID-19, as well as ARCT-032 (LUNAR-CF), a mRNA therapeutic candidate for cystic fibrosis. Its product pipeline includes, ARCT-2301 for bivalent: ancestral/omicron which is in Phase 3; ARCT-2303 for monovalent that is in Phase 3; ARCT-2138 for quadrivalent which is in Phase 1; and LUNAR-FLU which is in pre-clinical trial. Arcturus Therapeutics Holdings Inc. was founded in 2013 and is headquartered in San Diego, California.
Receive News & Ratings for Zymeworks Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Zymeworks and related companies with MarketBeat.com's FREE daily email newsletter.
