Comparing Zymeworks (ZYME) and The Competition

Zymeworks (NASDAQ:ZYME) is one of 450 publicly-traded companies in the “Pharmaceutical Preparations” industry, but how does it compare to its competitors? We will compare Zymeworks to similar businesses based on the strength of its valuation, dividends, risk, analyst recommendations, earnings, profitability and institutional ownership.

Profitability

This table compares Zymeworks and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zymeworks	-59.96%	-21.59%	-16.52%
Zymeworks Competitors	-2,625.49%	-359.63%	-43.39%

Valuation and Earnings

This table compares Zymeworks and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Zymeworks	$76.30 million	-$122.69 million	-19.04
Zymeworks Competitors	$439.19 million	-$68.89 million	-9.09

Zymeworks’ competitors have higher revenue and earnings than Zymeworks. Zymeworks is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

92.9% of Zymeworks shares are owned by institutional investors. Comparatively, 39.5% of shares of all “Pharmaceutical Preparations” companies are owned by institutional investors. 1.9% of Zymeworks shares are owned by company insiders. Comparatively, 13.9% of shares of all “Pharmaceutical Preparations” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Zymeworks and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zymeworks	1	1	0	2	2.75
Zymeworks Competitors	4790	9961	15995	370	2.38

As a group, “Pharmaceutical Preparations” companies have a potential upside of 109.31%. Given Zymeworks’ competitors higher probable upside, analysts clearly believe Zymeworks has less favorable growth aspects than its competitors.

Volatility & Risk

Zymeworks has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Zymeworks’ competitors have a beta of 10.34, indicating that their average stock price is 934% more volatile than the S&P 500.

Summary

Zymeworks competitors beat Zymeworks on 7 of the 13 factors compared.

Zymeworks Company Profile

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.