Zymeworks (NASDAQ:ZYME – Get Free Report) and Petros Pharmaceuticals (NASDAQ:PTPI – Get Free Report) are both small-cap manufacturing companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.
Institutional & Insider Ownership
92.9% of Zymeworks shares are owned by institutional investors. Comparatively, 12.3% of Petros Pharmaceuticals shares are owned by institutional investors. 33.5% of Zymeworks shares are owned by company insiders. Comparatively, 12.3% of Petros Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Zymeworks and Petros Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zymeworks | -126.92% | -37.97% | -25.31% |
| Petros Pharmaceuticals | N/A | -78.22% | -23.50% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zymeworks | $105.96 million | 15.81 | -$81.13 million | ($1.37) | -16.74 |
| Petros Pharmaceuticals | $5.11 million | 0.04 | -$8.16 million | ($1.64) | 0.00 |
Petros Pharmaceuticals has lower revenue, but higher earnings than Zymeworks. Zymeworks is trading at a lower price-to-earnings ratio than Petros Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Zymeworks has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Petros Pharmaceuticals has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Zymeworks and Petros Pharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zymeworks | 1 | 1 | 8 | 1 | 2.82 |
| Petros Pharmaceuticals | 0 | 0 | 0 | 0 | 0.00 |
Zymeworks presently has a consensus price target of $36.67, suggesting a potential upside of 59.87%. Given Zymeworks’ stronger consensus rating and higher possible upside, research analysts clearly believe Zymeworks is more favorable than Petros Pharmaceuticals.
Summary
Zymeworks beats Petros Pharmaceuticals on 10 of the 15 factors compared between the two stocks.
About Zymeworks
Zymeworks Inc., a clinical-stage biopharmaceutical company, discovers, develops, and commercializes biotherapeutics for the treatment of cancer. The company’s lead product candidates include zanidatamab, a novel bispecific antibody that is in Phase 1 and Phase 2 clinical trials for the treatment of biliary tract, gastroesophageal adenocarcinomas, and breast cancer; and ZW49, a biparatopic anti- human epidermal growth factor receptor 2 (HER2) antibody-drug conjugate that is in Phase 1 clinical trial for the treatment of advanced or metastatic HER2-expressing tumors. The company has strategic partnerships with Merck Sharp & Dohme Research Ltd.; Eli Lilly and Company; Bristol-Myers Squibb company; GlaxoSmithKline Intellectual Property Development Ltd.; Daiichi Sankyo Co., Ltd.; Janssen Biotech, Inc.; and BeiGene, Ltd. It also has licensing and research collaboration with LEO Pharma A/S to discover and develop bispecific antibodies; and Iconic Therapeutics, Inc. Zymeworks Inc. was founded in 2003 and is headquartered in Vancouver, Canada.
About Petros Pharmaceuticals
Petros Pharmaceuticals, Inc., a pharmaceutical company, focuses on men's health therapeutics in the United States and internationally. It operates through two segments, Prescription Medications and Medical Devices. The company engages in the commercialization and development of Stendra, an PDE-5 inhibitor prescription medication for the treatment of erectile dysfunction (ED). It also develops and commercializes H100, a novel and patented topical formulation candidate for the treatment of acute Peyronie's disease. The company offers men's health products, including vacuum erection devices, penile injections, PreBoost, VenoSeal, and urinary tract infection tests for the treatment of erectile dysfunction. Petros Pharmaceuticals, Inc. is based in New York, New York.
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