Phathom Pharmaceuticals (NASDAQ:PHAT – Get Free Report) and Zentalis Pharmaceuticals (NASDAQ:ZNTL – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.
Insider & Institutional Ownership
99.0% of Phathom Pharmaceuticals shares are owned by institutional investors. 9.3% of Phathom Pharmaceuticals shares are owned by insiders. Comparatively, 3.8% of Zentalis Pharmaceuticals 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.
Volatility and Risk
Phathom Pharmaceuticals has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, Zentalis Pharmaceuticals has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Phathom Pharmaceuticals | 1 | 0 | 6 | 1 | 2.88 |
| Zentalis Pharmaceuticals | 1 | 4 | 4 | 0 | 2.33 |
Phathom Pharmaceuticals presently has a consensus target price of $22.86, indicating a potential upside of 146.84%. Zentalis Pharmaceuticals has a consensus target price of $6.75, indicating a potential upside of 79.05%. Given Phathom Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Phathom Pharmaceuticals is more favorable than Zentalis Pharmaceuticals.
Profitability
This table compares Phathom Pharmaceuticals and Zentalis Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Phathom Pharmaceuticals | -41.34% | N/A | -20.81% |
| Zentalis Pharmaceuticals | N/A | -70.18% | -51.46% |
Earnings and Valuation
This table compares Phathom Pharmaceuticals and Zentalis Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Phathom Pharmaceuticals | $175.11 million | 4.28 | -$221.25 million | ($1.28) | -7.23 |
| Zentalis Pharmaceuticals | $67.43 million | 4.01 | -$137.06 million | ($1.95) | -1.93 |
Zentalis Pharmaceuticals has lower revenue, but higher earnings than Phathom Pharmaceuticals. Phathom Pharmaceuticals is trading at a lower price-to-earnings ratio than Zentalis Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Summary
Phathom Pharmaceuticals beats Zentalis Pharmaceuticals on 11 of the 15 factors compared between the two stocks.
About Phathom Pharmaceuticals
Phathom Pharmaceuticals, Inc., biopharmaceutical company, focuses on developing and commercializing treatments for gastrointestinal diseases. The company has the rights in the United States, Europe, and Canada for an investigational potassium-competitive acid blocker (P-CAB) that blocks acid secretion in the stomach. It is also developing vonoprazan for the treatment of erosive gastroesophageal reflux disease; and in combination with antibiotics for the treatment of Helicobacter pylori infection. The company was incorporated in 2018 and is headquartered in Florham Park, New Jersey.
About Zentalis Pharmaceuticals
Zentalis Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing small molecule therapeutics for the treatment of various cancers. Its products candidatures include the ZN-c3, an inhibitor of WEE1, a protein tyrosine kinase for the treatment of inhibitor for advanced solid tumors and hematological malignancies; in Phase 2 clinical trial as a monotherapy for the treatment of uterine serous carcinoma indications; Phase 2 clinical trial in Cyclin E1 driven high-grade serous ovarian cancer, fallopian tube, or primary peritoneal cancer; Phase 1/2 clinical trial in combination with PARPi for platinum-resistant ovarian cancer; Phase 1b clinical trial in combination with chemotherapy in platinum-resistant ovarian, and peritoneal or fallopian tube cancer; Phase 1/2 clinical trial in combination with chemotherapy in relapsed or refractory osteosarcoma; Phase 1/2 clinical trial with encorafenib and cetuximab for mutant metastatic colorectal cancer; and Phase 1/2 clinical trial in combination with chemotherapy in pancreatic cancer. The company's products pipeline also includes ZN-d5, an oral small molecule inhibitor of B-cell lymphoma 2, for hematological malignancies and related disorders; and BCL-xL heterobifunctional degrader, a member of the anti-apoptotic BCL-2 proteins, for solid tumors and hematological malignancies. Zentalis Pharmaceuticals, Inc. has licensing agreements and strategic collaborations with Recurium IP Holdings, LLC; Pfizer, Inc.; Zentera Therapeutics; Dana-Farber; and GlaxoSmithKline plc. The company was incorporated in 2014 and is headquartered in New York, New York.
Receive News & Ratings for Phathom Pharmaceuticals Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Phathom Pharmaceuticals and related companies with MarketBeat.com's FREE daily email newsletter.
