Analyzing Zymeworks (NYSE:ZYME) and Checkpoint Therapeutics (NYSE:CKPT)

Zymeworks (NYSE:ZYME) and Checkpoint Therapeutics (NASDAQ:CKPT) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.

Profitability

This table compares Zymeworks and Checkpoint Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zymeworks -44.67% -16.41% -13.06%
Checkpoint Therapeutics -952.83% -211.99% -134.05%

Institutional and Insider Ownership

29.2% of Zymeworks shares are held by institutional investors. Comparatively, 8.7% of Checkpoint Therapeutics shares are held by institutional investors. 4.8% of Zymeworks shares are held by insiders. Comparatively, 9.8% of Checkpoint Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Zymeworks and Checkpoint Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zymeworks $53.02 million 17.95 -$36.56 million ($1.26) -19.28
Checkpoint Therapeutics $3.51 million 29.57 -$36.37 million ($1.27) -2.26

Checkpoint Therapeutics has lower revenue, but higher earnings than Zymeworks. Zymeworks is trading at a lower price-to-earnings ratio than Checkpoint Therapeutics, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Zymeworks and Checkpoint Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zymeworks 0 0 5 0 3.00
Checkpoint Therapeutics 0 0 2 0 3.00

Zymeworks currently has a consensus price target of $30.80, suggesting a potential upside of 26.80%. Checkpoint Therapeutics has a consensus price target of $15.00, suggesting a potential upside of 422.65%. Given Checkpoint Therapeutics’ higher probable upside, analysts clearly believe Checkpoint Therapeutics is more favorable than Zymeworks.

Volatility & Risk

Zymeworks has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Checkpoint Therapeutics has a beta of 3.12, meaning that its share price is 212% more volatile than the S&P 500.

Summary

Zymeworks beats Checkpoint Therapeutics on 7 of the 13 factors compared between the two stocks.

Zymeworks Company Profile

Zymeworks Inc., a clinical-stage biopharmaceutical company, engages in the discovery, development, and commercialization of bio-therapeutics for the treatment of cancer in Canada. The company's lead product candidates include ZW25, a bispecific antibody that is in Phase I clinical trial for the treatment of breast and gastric cancer; ZW49, a bispecific antibody-drug conjugate that is in preclinical stage for treating breast and gastric cancers, and solid tumors. The company has strategic partnerships with Merck Sharp & Dohme Research Ltd.; Eli Lilly and Company; Celgene Corporation and Celgene Alpine Investment Co. LLC; GlaxoSmithKline Intellectual Property Development Limited; Daiichi Sankyo Co., Ltd.; and Janssen Biotech, Inc., as well as a collaboration agreement with BeiGene, Ltd. It also has licensing and research collaboration with LEO Pharma A/S to discover and develop bispecific antibodies targeting cytokine-receptor pathways. Zymeworks Inc. was founded in 2003 and is headquartered in Vancouver, Canada.

Checkpoint Therapeutics Company Profile

Checkpoint Therapeutics, Inc., an immuno-oncology biopharmaceutical company, focuses on the acquisition, development, and commercialization of novel treatments for patients with solid tumor cancers. The company's product candidates include CK-101 that in the phase 1/2 clinical trial for the treatment of epidermal growth factor receptor mutation-positive non-small cell lung cancer; and CK-301, a programmed death ligand-1 (PD-L1), which is in phase I clinical trial in patients with selected recurrent or metastatic cancers. It also develops CK-103, a small molecule inhibitor of BET bromodomains; and CK-302, a human agonistic antibody for oncology indications. Checkpoint Therapeutics, Inc. has a collaboration agreement with TG Therapeutics, Inc. to develop and commercialize the anti-PD-L1 antibodies anti-GITR antibody research programs in the field of hematological malignancies. The company was founded in 2014 and is based in New York, New York. Checkpoint Therapeutics, Inc. is a subsidiary of Fortress Biotech, Inc.

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