Contrasting Greenwich LifeSciences (NASDAQ:GLSI) & Zai Lab (NASDAQ:ZLAB)

Greenwich LifeSciences (NASDAQ:GLSI) and Zai Lab (NASDAQ:ZLAB) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Risk & Volatility

Greenwich LifeSciences has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Zai Lab has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Profitability

This table compares Greenwich LifeSciences and Zai Lab’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Greenwich LifeSciences	N/A	-80.50%	-78.56%
Zai Lab	-125.46%	-37.07%	-30.72%

Institutional & Insider Ownership

4.2% of Greenwich LifeSciences shares are owned by institutional investors. Comparatively, 41.7% of Zai Lab shares are owned by institutional investors. 52.9% of Greenwich LifeSciences shares are owned by company insiders. Comparatively, 5.2% of Zai Lab shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Greenwich LifeSciences and Zai Lab’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Greenwich LifeSciences	N/A	N/A	-$7.82 million	($0.71)	-20.31
Zai Lab	$266.72 million	5.36	-$334.62 million	($3.45)	-4.18

Greenwich LifeSciences has higher earnings, but lower revenue than Zai Lab. Greenwich LifeSciences is trading at a lower price-to-earnings ratio than Zai Lab, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Greenwich LifeSciences and Zai Lab, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greenwich LifeSciences	0	0	1	0	3.00
Zai Lab	0	0	5	0	3.00

Greenwich LifeSciences presently has a consensus target price of $36.00, suggesting a potential upside of 149.65%. Zai Lab has a consensus target price of $64.22, suggesting a potential upside of 345.38%. Given Zai Lab’s higher possible upside, analysts clearly believe Zai Lab is more favorable than Greenwich LifeSciences.

Summary

Zai Lab beats Greenwich LifeSciences on 7 of the 12 factors compared between the two stocks.

About Greenwich LifeSciences

Greenwich LifeSciences, Inc., a clinical-stage biopharmaceutical company, focuses on the development of novel cancer immunotherapies for breast cancer and other HER2/neu-expressing cancers. Its lead product candidate is the GP2, an immunotherapy, which is in Phase III clinical trial to prevent breast cancer recurrences in patients who have previously undergone surgery. The company was formerly known as Norwell, Inc. and changed its name to Greenwich LifeSciences, Inc. in March 2018. Greenwich LifeSciences, Inc. was incorporated in 2006 and is headquartered in Stafford, Texas.

About Zai Lab

Zai Lab Limited develops and commercializes therapies to treat oncology, autoimmune disorders, infectious diseases, and neuroscience. Its commercial products include Zejula, an orally administered poly polymerase 1/2 inhibitor; Optune, a cancer therapy that uses electric fields tuned to specific frequencies to kill tumor cells; NUZYRA for acute bacterial skin and skin structure infections, and community acquired bacterial pneumonia; Qinlock to treat gastrointestinal stromal tumors, and VYVGART, a human IgG1 antibody fragment for myesthenia gravis. The company also develops Tumor Treating Fields, a portable device for delivery of electric fields; Repotrectinib, a tyrosine kinase inhibitor (TKI) to target ROS1 and TRK A/B/C in TKI-naïve- or -pretreated cancer patients; Tisotumab vedotin, an antibody drug conjugate; Adagrasib for treating KRAS-G12C-mutated NSCLC, colorectal cancer, and pancreatic cancer; and Bemarituzumab to treat gastric and gastroesophageal junction cancer patients. In addition, it develops Sulbactam/durlobactam, a combination of a beta-lactam antibiotic and a beta-lactamase inhibitor for the treatment of serious infections caused by Acinetobacter; KarXT for the treatment of psychiatric and neurological conditions. It has license and collaboration agreement with Tesaro, Inc. to develop, manufacture, and commercialize niraparib; NovoCure to develop and commercialize Tumor Treating Fields; Deciphera to develop and commercialize ripretinib; Paratek Bermuda Ltd. to develop, manufacture, and commercialize omadacycline; argenx, to develop and commercialize efgartigimod; BMS to develop and commercialize tisotumab vedotin and repotrectinib; Mirati to research, develop, manufacture, and commercialize adagrasib; Amgen to develop and commercialize bemarituzumab; and Innoviva to develop and commercialize Sulbactam-Durlobactam; Karuna to develop and commercialize KarXT. The company was incorporated in 2013 and is headquartered in Shanghai, China.