Summit Therapeutics (NASDAQ:SMMT – Get Free Report) and Kezar Life Sciences (NASDAQ:KZR – Get Free Report) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.
Institutional and Insider Ownership
4.6% of Summit Therapeutics shares are owned by institutional investors. Comparatively, 67.9% of Kezar Life Sciences shares are owned by institutional investors. 88.3% of Summit Therapeutics shares are owned by insiders. Comparatively, 9.3% of Kezar Life Sciences shares are owned by 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.
Risk & Volatility
Summit Therapeutics has a beta of -0.92, meaning that its stock price is 192% less volatile than the S&P 500. Comparatively, Kezar Life Sciences has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Summit Therapeutics | 0 | 1 | 3 | 0 | 2.75 |
| Kezar Life Sciences | 0 | 3 | 0 | 0 | 2.00 |
Summit Therapeutics presently has a consensus target price of $34.75, suggesting a potential upside of 89.79%. Kezar Life Sciences has a consensus target price of $40.50, suggesting a potential upside of 442.90%. Given Kezar Life Sciences’ higher possible upside, analysts clearly believe Kezar Life Sciences is more favorable than Summit Therapeutics.
Profitability
This table compares Summit Therapeutics and Kezar Life Sciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Summit Therapeutics | N/A | -85.42% | -52.66% |
| Kezar Life Sciences | N/A | -54.95% | -46.11% |
Earnings & Valuation
This table compares Summit Therapeutics and Kezar Life Sciences”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Summit Therapeutics | $700,000.00 | 19,289.59 | -$614.93 million | ($0.28) | -65.39 |
| Kezar Life Sciences | $7.00 million | 7.78 | -$101.87 million | ($13.18) | -0.57 |
Kezar Life Sciences has higher revenue and earnings than Summit Therapeutics. Summit Therapeutics is trading at a lower price-to-earnings ratio than Kezar Life Sciences, indicating that it is currently the more affordable of the two stocks.
Summary
Kezar Life Sciences beats Summit Therapeutics on 8 of the 13 factors compared between the two stocks.
About Summit Therapeutics
Summit Therapeutics Inc., a biopharmaceutical company, focuses on discovery, development, and commercialization of patient, physician, caregiver, and societal friendly medicinal therapies in the United States, and the United Kingdom. The company’s lead development candidate is Ivonescimab, a bispecific antibody for immunotherapy through blockade of PD-1 with the anti-angiogenesis; and anti-infectives portfolio includes SMT-738, a novel class of precision antibiotics for the treatment of multidrug resistant infections, which primarily includes carbapenem-resistant Enterobacteriaceae infections. It has a collaboration and license agreement with Akeso, Inc. and its affiliates to develop and commercialize ivonescimab, as well as strategic collaboration with The University of Texas MD Anderson Cancer Center for the purpose of accelerating the development of ivonescimab. The company was founded in 2003 and is headquartered in Miami, Florida.
About Kezar Life Sciences
Kezar Life Sciences, Inc., a clinical-stage biotechnology company, engages in the discovery and development of novel small molecule therapeutics to treat unmet needs in immune-mediated diseases and cancer in the United States. The company's lead product candidate is zetomipzomib (KZR-616), a selective immunoproteasome inhibitor that is in Phase 2b clinical trials for various indications, including lupus nephritis, dermatomyositis, and polymyositis; Phase 1b clinical trials in systemic lupus erythematosus; and completed Phase 2a clinical trials in lupus nephritis. Its preclinical products include KZR-261, a novel first-in-class protein secretion inhibitor for the treatment of tumors resistant to traditional chemotherapeutics. Kezar Life Sciences, Inc. was incorporated in 2015 and is headquartered in South San Francisco, California.
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