Contrasting United Therapeutics (NASDAQ:UTHR) and Zenas BioPharma (NASDAQ:ZBIO)

Zenas BioPharma (NASDAQ:ZBIO) and United Therapeutics (NASDAQ:UTHR) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Valuation and Earnings

This table compares Zenas BioPharma and United Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zenas BioPharma	$10.00 million	214.31	-$377.74 million	($8.99)	-3.66
United Therapeutics	$3.18 billion	6.57	$1.33 billion	$27.95	17.45

United Therapeutics has higher revenue and earnings than Zenas BioPharma. Zenas BioPharma is trading at a lower price-to-earnings ratio than United Therapeutics, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Zenas BioPharma has a beta of -1.04, indicating that its share price is 204% less volatile than the S&P 500. Comparatively, United Therapeutics has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.

Institutional and Insider Ownership

94.1% of United Therapeutics shares are owned by institutional investors. 22.0% of Zenas BioPharma shares are owned by insiders. Comparatively, 8.6% of United Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Zenas BioPharma and United Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zenas BioPharma	N/A	-122.45%	-58.04%
United Therapeutics	41.56%	20.18%	17.98%

Analyst Recommendations

This is a summary of recent recommendations for Zenas BioPharma and United Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zenas BioPharma	1	2	6	0	2.56
United Therapeutics	0	2	11	0	2.85

Zenas BioPharma currently has a consensus price target of $45.71, indicating a potential upside of 39.03%. United Therapeutics has a consensus price target of $646.00, indicating a potential upside of 32.48%. Given Zenas BioPharma’s higher possible upside, equities analysts clearly believe Zenas BioPharma is more favorable than United Therapeutics.

Summary

United Therapeutics beats Zenas BioPharma on 11 of the 14 factors compared between the two stocks.

About Zenas BioPharma

Zenas BioPharma, Inc. is a clinical-stage global biopharmaceutical company, which engages in the development and commercialization of transformative immunology-based therapies for patients. The company was founded by Lonnie O. Moulder Jr on November 12, 2019 and is headquartered in Waltham, MA.

About United Therapeutics

United Therapeutics Corporation, a biotechnology company, engages in the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases in the United States and internationally. The company offers Tyvaso DPI, an inhaled dry powder via pre-filled and single-use cartridges; Tyvaso, an inhaled solution via ultrasonic nebulizer; Remodulin (treprostinil) injection to treat patients with pulmonary arterial hypertension (PAH) to diminish symptoms associated with exercise; Orenitram, a tablet dosage form of treprostinil, to delay disease progression and improve exercise capacity in PAH patients; and Adcirca, an oral PDE-5 inhibitor to enhance the exercise ability in PAH patients. It also markets and sells Unituxin (dinutuximab) injection, a monoclonal antibody for treating high-risk neuroblastoma; and Remunity Pump, which contains a pump and separate controller for Remodulin. In addition, the company engages in developing RemoPro and Ralinepag for the treatment of PAH; Aurora-GT, a gene therapy product to rebuild the blood vessels in the lungs; and Nebulized Tyvaso, for the treatment of idiopathic pulmonary fibrosis, as well as xenografts, which are development-stage organ products. It has licensing and collaboration agreements with DEKA Research & Development Corp. to develop a semi-disposable system for the subcutaneous delivery of treprostinil; MannKind Corporation to develop and license treprostinil inhalation powder and the Dreamboat device; and Arena Pharmaceuticals, Inc. to develop Ralinepag. The company was incorporated in 1996 and is headquartered in Silver Spring, Maryland.