Financial Contrast: Zevra Therapeutics (NASDAQ:ZVRA) vs. Gyre Therapeutics (NASDAQ:GYRE)

Gyre Therapeutics (NASDAQ:GYRE) and Zevra Therapeutics (NASDAQ:ZVRA) are both small-cap healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.

Risk & Volatility

Gyre Therapeutics has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500. Comparatively, Zevra Therapeutics has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Institutional and Insider Ownership

24.0% of Gyre Therapeutics shares are held by institutional investors. Comparatively, 35.0% of Zevra Therapeutics shares are held by institutional investors. 9.5% of Gyre Therapeutics shares are held by company insiders. Comparatively, 3.7% of Zevra Therapeutics shares are held by company 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Gyre Therapeutics and Zevra Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gyre Therapeutics	2	0	1	0	1.67
Zevra Therapeutics	0	1	9	0	2.90

Gyre Therapeutics currently has a consensus target price of $16.00, indicating a potential upside of 133.24%. Zevra Therapeutics has a consensus target price of $27.14, indicating a potential upside of 118.89%. Given Gyre Therapeutics’ higher possible upside, research analysts clearly believe Gyre Therapeutics is more favorable than Zevra Therapeutics.

Earnings and Valuation

This table compares Gyre Therapeutics and Zevra Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gyre Therapeutics	$116.59 million	6.56	$5.03 million	($0.21)	-32.67
Zevra Therapeutics	$106.47 million	6.92	$83.23 million	$0.92	13.48

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

Profitability

This table compares Gyre Therapeutics and Zevra Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gyre Therapeutics	-15.47%	-6.57%	-5.35%
Zevra Therapeutics	42.82%	54.54%	34.15%

Summary

Zevra Therapeutics beats Gyre Therapeutics on 10 of the 14 factors compared between the two stocks.

About Gyre Therapeutics

Gyre Therapeutics, Inc., a biopharmaceutical company, primarily focuses on the development and commercialization of Hydronidone for the treatment of Metabolic Dysfunction Associated Steatohepatitis in the United States. Its Hydronidone is also being evaluated for the treatment of liver fibrosis across a spectrum of chronic liver diseases. In addition, it advances a product pipeline in China, including Pirfenidone, for dermatomyositis interstitial lung disease, systemic sclerosis-associated interstitial lung disease, and pneumoconiosis, as well as for diabetic kidney disease; and product candidates for acute-on-chronic liver failure, chronic obstructive pulmonary disease, and pulmonary arterial hypertension. The company was founded in 2002 and is headquartered in San Diego, California.

About Zevra Therapeutics

Zevra Therapeutics, Inc. discovers and develops various proprietary prodrugs to treat serious medical conditions in the United States. The company develops its products through Ligand Activated Therapy platform. Its lead product candidate is KP1077, consisting of KP1077IH, which is under Phase 2 clinical trial for the treatment of idiopathic hypersomnia, and KP1077N, which is under Phase ½ clinical trial to treat narcolepsy. The company is also developing Celiprolol, a prodrug product candidate that is under Phase 1/2 clinical trial for the treatment of vascular Ehlers Danlos syndrome. In addition, it offers AZSTARYS, a once-daily treatment for attention deficit hyperactivity disorder in patients aged six years and older; OLPRUVA to treat urea cycle disorders; and Arimoclomol for the treatment of niemann pick disease type C, an ultra-rare neurodegenerative lysosomal storage disorder. The company has collaboration and license agreement with Commave Therapeutics SA to develop, manufacture and commercialize the company’s product candidates containing SDX and d-methylphenidate; and license agreement with Acer and Relief Therapeutics, Inc. to develop and commercialize rights for OLPRUVA. The company was formerly known as KemPharm, Inc. and changed its name to Zevra Therapeutics, Inc. in February 2023. Zevra Therapeutics, Inc. was incorporated in 2006 and is headquartered in Celebration, Florida.