Financial Analysis: ZEALAND PHARMA/S (NASDAQ:ZEAL) versus Five Prime Therapeutics (NASDAQ:FPRX)
ZEALAND PHARMA/S (NASDAQ:ZEAL) and Five Prime Therapeutics (NASDAQ:FPRX) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.
Insider & Institutional Ownership
7.4% of ZEALAND PHARMA/S shares are owned by institutional investors. Comparatively, 72.1% of Five Prime Therapeutics shares are owned by institutional investors. 7.1% of Five Prime Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a summary of current recommendations for ZEALAND PHARMA/S and Five Prime Therapeutics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Five Prime Therapeutics||1||4||1||0||2.00|
ZEALAND PHARMA/S presently has a consensus price target of $40.33, suggesting a potential upside of 43.84%. Five Prime Therapeutics has a consensus price target of $12.25, suggesting a potential upside of 345.45%. Given Five Prime Therapeutics’ higher possible upside, analysts clearly believe Five Prime Therapeutics is more favorable than ZEALAND PHARMA/S.
This table compares ZEALAND PHARMA/S and Five Prime Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Five Prime Therapeutics||-922.43%||-71.29%||-50.29%|
Valuation & Earnings
This table compares ZEALAND PHARMA/S and Five Prime Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ZEALAND PHARMA/S||$6.20 million||163.04||-$85.67 million||$3.00||9.35|
|Five Prime Therapeutics||$14.87 million||6.73||-$137.20 million||($3.92)||-0.70|
ZEALAND PHARMA/S has higher earnings, but lower revenue than Five Prime Therapeutics. Five Prime Therapeutics is trading at a lower price-to-earnings ratio than ZEALAND PHARMA/S, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
ZEALAND PHARMA/S has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500. Comparatively, Five Prime Therapeutics has a beta of 2.54, suggesting that its share price is 154% more volatile than the S&P 500.
ZEALAND PHARMA/S beats Five Prime Therapeutics on 8 of the 14 factors compared between the two stocks.
ZEALAND PHARMA/S Company Profile
Zealand Pharma A/S, a biotechnology company, engages in the discovery, design, and development of peptide therapeutics-based medicines in Denmark. It has a portfolio of proprietary medicines in late-stage clinical development focusing on gastrointestinal and metabolic diseases. The company markets lixisenatide for the treatment of type 2 diabetes under the brand names of Adlyxin and Lyxumia; and a combination of lixisenatide and insulin glargine for the treatment of type 2 diabetes under the brand names of Soliqua 100/33 and Suliqua. The company's product pipeline includes glepaglutide, a long acting GLP-2 analog for the treatment of short bowel syndrome, which has completed Phase 2 clinical trials; and dasiglucagon, a proprietary glucagon analog for various indications comprising as a dual-hormone artificial pancreas for diabetes treatment, rescue treatment for severe hypoglycemia, and congenital hyperinsulinism. The company has collaboration agreements with Sanofi-Aventis Deutschland GmbH and Boehringer Ingelheim GmbH; and Alexion Pharmaceuticals, Inc. for the discovery and development of peptide therapies for complement-mediated diseases. The company was founded in 1997 and is headquartered in Copenhagen, Denmark.
Five Prime Therapeutics Company Profile
Five Prime Therapeutics, Inc., a clinical-stage biotechnology company, focuses on the discovery and development of innovative protein therapeutics. The company's product candidates comprise Bemarituzumab, an antibody that inhibits fibroblast growth factor receptor 2b, or FGFR2b, which is in Phase III clinical trials to treat patients with gastric or gastroesophageal junction and GEJ cancer; and FPA150, a CD8 T cell checkpoint inhibitor antibody that targets B7-H4 in various cancers, as well as FPT155, a soluble CD80 fusion protein that enhances co-stimulation of T cells through CD28. Its product candidates also include Cabiralizumab, an antibody that inhibits colony stimulating factor-1 receptor that is in Phase Ia/Ib clinical trials for the treatment of various cancers in combination with nivolumab; and is in Phase I/II clinical trials for the treatment of pigmented villonodular synovitis tumor. The company's BMS-986258, an anti-T cell immunoglobulin and mucin domain-3 antibody, which is in clinical trial as a single agent and in combination with Opdivo in patients with advanced malignant tumors. It has license and collaboration agreements with Bristol-Myers Squibb Company, GlaxoSmithKline LLC, INBRX 110 LP, UCB Pharma S.A., and Zai Lab (Shanghai) Co., Ltd.; a collaboration agreement with Roche; and license agreements with Galaxy Biotech, LLC, BioWa, Inc. and Lonza Sales AG. The company was founded in 2001 and is headquartered in South San Francisco, California.
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