Zai Lab (NASDAQ:ZLAB) & Myriad Genetics (NASDAQ:MYGN) Critical Contrast

Zai Lab (NASDAQ:ZLAB) and Myriad Genetics (NASDAQ:MYGN) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Volatility & Risk

Zai Lab has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Myriad Genetics has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500.

Earnings & Valuation

This table compares Zai Lab and Myriad Genetics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zai Lab	$398.99 million	4.83	-$257.10 million	($1.95)	-8.83
Myriad Genetics	$825.30 million	0.78	-$127.30 million	($4.33)	-1.61

Myriad Genetics has higher revenue and earnings than Zai Lab. Zai Lab is trading at a lower price-to-earnings ratio than Myriad Genetics, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Zai Lab and Myriad Genetics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zai Lab	1	1	6	0	2.63
Myriad Genetics	2	8	4	0	2.14

Zai Lab presently has a consensus price target of $56.35, suggesting a potential upside of 227.24%. Myriad Genetics has a consensus price target of $10.50, suggesting a potential upside of 51.08%. Given Zai Lab’s stronger consensus rating and higher probable upside, research analysts plainly believe Zai Lab is more favorable than Myriad Genetics.

Insider & Institutional Ownership

41.7% of Zai Lab shares are owned by institutional investors. Comparatively, 99.0% of Myriad Genetics shares are owned by institutional investors. 5.0% of Zai Lab shares are owned by insiders. Comparatively, 2.4% of Myriad Genetics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Zai Lab and Myriad Genetics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zai Lab	-46.83%	-25.83%	-17.67%
Myriad Genetics	-48.53%	-7.11%	-4.48%

About Zai Lab

Zai Lab Limited develops and commercializes therapies to treat oncology, autoimmune disorders, infectious diseases, and neuroscience. Its commercial products include Zejula, an orally administered poly polymerase 1/2 inhibitor; Optune, a cancer therapy that uses electric fields tuned to specific frequencies to kill tumor cells; NUZYRA for acute bacterial skin and skin structure infections, and community acquired bacterial pneumonia; Qinlock to treat gastrointestinal stromal tumors, and VYVGART, a human IgG1 antibody fragment for myesthenia gravis. The company also develops Tumor Treating Fields, a portable device for delivery of electric fields; Repotrectinib, a tyrosine kinase inhibitor (TKI) to target ROS1 and TRK A/B/C in TKI-naïve- or -pretreated cancer patients; Tisotumab vedotin, an antibody drug conjugate; Adagrasib for treating KRAS-G12C-mutated NSCLC, colorectal cancer, and pancreatic cancer; and Bemarituzumab to treat gastric and gastroesophageal junction cancer patients. In addition, it develops Sulbactam/durlobactam, a combination of a beta-lactam antibiotic and a beta-lactamase inhibitor for the treatment of serious infections caused by Acinetobacter; KarXT for the treatment of psychiatric and neurological conditions. It has license and collaboration agreement with Tesaro, Inc. to develop, manufacture, and commercialize niraparib; NovoCure to develop and commercialize Tumor Treating Fields; Deciphera to develop and commercialize ripretinib; Paratek Bermuda Ltd. to develop, manufacture, and commercialize omadacycline; argenx, to develop and commercialize efgartigimod; BMS to develop and commercialize tisotumab vedotin and repotrectinib; Mirati to research, develop, manufacture, and commercialize adagrasib; Amgen to develop and commercialize bemarituzumab; and Innoviva to develop and commercialize Sulbactam-Durlobactam; Karuna to develop and commercialize KarXT. The company was incorporated in 2013 and is headquartered in Shanghai, China.

About Myriad Genetics

Myriad Genetics, Inc., a genetic testing and precision medicine company, develops genetic tests in the United States and internationally. The company offers molecular diagnostic tests for use in oncology, and women's and pharmacogenomics. It also provides MyRisk Hereditary Cancer Test, a DNA sequencing test for assessing the risks for hereditary cancers; BRACAnalysis CDx Germline Companion Diagnostic Test, a DNA sequencing test to help determine the therapy for patients with metastatic breast, ovarian, metastatic pancreatic, and metastatic prostate cancer with deleterious or suspected deleterious germline BRCA variants; and MyChoice CDx Companion Diagnostic Test, a tumor test that determines homologous recombination deficiency status in patients with ovarian cancer. The company also offers Prolaris Prostate Cancer Prognostic Test, an RNA expression tumor analysis for assessing the aggressiveness of prostate cancer; EndoPredict Breast Cancer Prognostic Test, an RNA expression test for assessing the aggressiveness of breast cancer; Precise Tumor, a solution for precision oncology; and Prequel Prenatal Screen, a non-invasive prenatal screening test conducted using maternal blood to screen for severe chromosomal disorders in a fetus. It provides Foresight Carrier Screen, a prenatal test for future parents to assess their risk of passing on a recessive genetic condition to their offspring; SneakPeek, a non-invasive blood test that predicts the gender of a fetus; and GeneSight Psychotropic Mental Health Medication Test, a DNA genotyping test to aid psychotropic drug selection for patients suffering from depression, anxiety, attention-deficit, hyperactivity disorder, and other mental health conditions. It has a strategic collaboration with Illumina, Inc., Memorial Sloan Kettering Cancer Center, the University of Texas MD Anderson Cancer Center, SimonMed, and Onsite Women's Health. Myriad Genetics, Inc. was incorporated in 1992 and is headquartered in Salt Lake City, Utah.