Zai Lab (ZLAB) versus Its Competitors Financial Analysis

Zai Lab (NASDAQ:ZLAB) is one of 843 publicly-traded companies in the “Biotechnology” industry, but how does it compare to its rivals? We will compare Zai Lab to related businesses based on the strength of its institutional ownership, analyst recommendations, risk, dividends, profitability, valuation and earnings.

Volatility & Risk

Zai Lab has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Zai Lab’s rivals have a beta of -1.88, meaning that their average share price is 288% less volatile than the S&P 500.

Institutional and Insider Ownership

41.7% of Zai Lab shares are owned by institutional investors. Comparatively, 47.8% of shares of all “Biotechnology” companies are owned by institutional investors. 4.9% of Zai Lab shares are owned by insiders. Comparatively, 13.1% of shares of all “Biotechnology” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Zai Lab and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zai Lab	-44.91%	-31.15%	-18.17%
Zai Lab Competitors	-12,319.70%	-407.93%	-30.95%

Earnings and Valuation

This table compares Zai Lab and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Zai Lab	$441.73 million	-$175.54 million	-13.74
Zai Lab Competitors	$719.69 million	$11.20 million	-18.80

Zai Lab’s rivals have higher revenue and earnings than Zai Lab. Zai Lab is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations and price targets for Zai Lab and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zai Lab	1	1	4	1	2.71
Zai Lab Competitors	9903	15310	45655	1602	2.54

Zai Lab presently has a consensus price target of $37.25, indicating a potential upside of 51.42%. As a group, “Biotechnology” companies have a potential upside of 126.38%. Given Zai Lab’s rivals higher possible upside, analysts clearly believe Zai Lab has less favorable growth aspects than its rivals.

Summary

Zai Lab beats its rivals on 7 of the 13 factors compared.

Zai Lab Company Profile

Zai Lab is a biopharmaceutical company that discovers, develops and commercializes medicines for patients with serious diseases. Its research and development programs focus on oncology, immunology, neuroscience and infectious diseases. Founded in 2014 by biopharmaceutical executive Samantha Du, the company is headquartered in Shanghai and operates in China and the United States. It advances its own drug candidates and works with international partners to develop and bring therapies to market. Zai Lab’s portfolio includes medicines and development programs for cancers and other conditions, including therapies introduced through licensing and collaboration agreements.