Financial Comparison: Zhengye Biotechnology (NASDAQ:ZYBT) vs. Arcturus Therapeutics (NASDAQ:ARCT)

Zhengye Biotechnology (NASDAQ:ZYBT) and Arcturus Therapeutics (NASDAQ:ARCT) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.

Insider & Institutional Ownership

94.5% of Arcturus Therapeutics shares are owned by institutional investors. 16.6% of Arcturus Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Zhengye Biotechnology has a beta of -4.21, indicating that its share price is 521% less volatile than the S&P 500. Comparatively, Arcturus Therapeutics has a beta of 2.4, indicating that its share price is 140% more volatile than the S&P 500.

Profitability

This table compares Zhengye Biotechnology and Arcturus Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zhengye Biotechnology	N/A	N/A	N/A
Arcturus Therapeutics	-80.19%	-29.13%	-22.03%

Earnings & Valuation

This table compares Zhengye Biotechnology and Arcturus Therapeutics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zhengye Biotechnology	$153.74 million	0.27	$1.55 million	N/A	N/A
Arcturus Therapeutics	$67.22 million	2.99	-$65.78 million	($2.38)	-2.97

Zhengye Biotechnology has higher revenue and earnings than Arcturus Therapeutics.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Zhengye Biotechnology and Arcturus Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zhengye Biotechnology	1	0	0	0	1.00
Arcturus Therapeutics	1	3	8	1	2.69

Arcturus Therapeutics has a consensus target price of $29.50, indicating a potential upside of 317.85%. Given Arcturus Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Arcturus Therapeutics is more favorable than Zhengye Biotechnology.

Summary

Arcturus Therapeutics beats Zhengye Biotechnology on 8 of the 13 factors compared between the two stocks.

About Zhengye Biotechnology

Zhengye Biotechnology Holding Limited is a veterinary vaccine manufacturer which encompasses research, development, manufacturing and sales of veterinary vaccines, with a focus on livestock vaccine principally in China. Zhengye Biotechnology Holding Limited is based in Jilin, China.

About Arcturus Therapeutics

Arcturus Therapeutics Holdings Inc., a late-stage clinical messenger RNA medicines and vaccine company, focuses on the development of infectious disease vaccines and other products within liver and respiratory rare diseases. Its technology platforms include LUNAR lipid-mediated delivery and STARR mRNA. The company is developing ARCT-810 (LUNAR-OTC), a mRNA-based therapeutic candidate, which is in Phase 2 clinical trial for treating ornithine transcarbamylase deficiency; and ARCT-154 (LUNAR-COV19), a mRNA vaccine candidate that is in Phase 3 arm of a Phase 1/2/3 study in Vietnam for the treatment of COVID-19, as well as ARCT-032 (LUNAR-CF), a mRNA therapeutic candidate for cystic fibrosis. Its product pipeline includes, ARCT-2301 for bivalent: ancestral/omicron which is in Phase 3; ARCT-2303 for monovalent that is in Phase 3; ARCT-2138 for quadrivalent which is in Phase 1; and LUNAR-FLU which is in pre-clinical trial. Arcturus Therapeutics Holdings Inc. was founded in 2013 and is headquartered in San Diego, California.