Evogene (NASDAQ:EVGN – Get Free Report) and Zai Lab (NASDAQ:ZLAB – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.
Profitability
This table compares Evogene and Zai Lab’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Evogene | -694.18% | -156.53% | -86.80% |
| Zai Lab | -41.86% | -27.43% | -16.72% |
Volatility & Risk
Evogene has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, Zai Lab has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.
Earnings and Valuation
This table compares Evogene and Zai Lab”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Evogene | $3.85 million | 0.61 | -$8.48 million | ($0.91) | -0.30 |
| Zai Lab | $460.16 million | 6.30 | -$175.54 million | ($1.71) | -14.90 |
Evogene has higher earnings, but lower revenue than Zai Lab. Zai Lab is trading at a lower price-to-earnings ratio than Evogene, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
10.4% of Evogene shares are owned by institutional investors. Comparatively, 41.6% of Zai Lab shares are owned by institutional investors. 7.4% of Evogene shares are owned by company insiders. Comparatively, 4.9% of Zai Lab shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Evogene and Zai Lab, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Evogene | 1 | 0 | 0 | 0 | 1.00 |
| Zai Lab | 1 | 1 | 4 | 1 | 2.71 |
Zai Lab has a consensus target price of $37.25, suggesting a potential upside of 46.19%. Given Zai Lab’s stronger consensus rating and higher probable upside, analysts clearly believe Zai Lab is more favorable than Evogene.
Summary
Zai Lab beats Evogene on 10 of the 15 factors compared between the two stocks.
About Evogene
Evogene Ltd., together with its subsidiaries, operates as a computational biology company. It focuses on product discovery and development in life-science based industries, including human health and agriculture, through the use of its Computational Predictive Biology (CPB) platform. The company operates through three segments: Agriculture, Human Health, and Industrial Applications. The Agriculture segment develops seed traits, ag-chemical products, and ag-biological products to enhance plant performance. Its products focus on various crops, such as corn, soybean, wheat, rice, and cotton. The Human Health segment discovers and develops human microbiome-based therapeutics for the treatment of immuno-oncology, GI related disorders, and antimicrobial resistance organisms. The Industrial Applications segment develops enhanced castor bean seeds to serve as a feedstock source for other industrial uses. The company also provides medical cannabis products. It operates in the United States, Israel, Brazil, and internationally. The company has strategic collaborations and licensing agreements with agricultural companies, such as BASF SE, Corteva, and Bayer. Evogene Ltd. was founded in 1999 and is headquartered in Rehovot, Israel.
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.
Receive News & Ratings for Evogene Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Evogene and related companies with MarketBeat.com's FREE daily email newsletter.
