Puma Biotechnology (NYSE: PBYI) and Zynerba Pharmaceuticals (NASDAQ:ZYNE) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Institutional and Insider Ownership

81.0% of Puma Biotechnology shares are owned by institutional investors. Comparatively, 34.3% of Zynerba Pharmaceuticals shares are owned by institutional investors. 22.7% of Puma Biotechnology shares are owned by insiders. Comparatively, 10.0% of Zynerba Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Puma Biotechnology and Zynerba Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Puma Biotechnology 0 1 8 0 2.89
Zynerba Pharmaceuticals 0 5 4 0 2.44

Puma Biotechnology currently has a consensus price target of $124.89, suggesting a potential upside of 2.70%. Zynerba Pharmaceuticals has a consensus price target of $14.63, suggesting a potential upside of 51.40%. Given Zynerba Pharmaceuticals’ higher probable upside, analysts clearly believe Zynerba Pharmaceuticals is more favorable than Puma Biotechnology.

Valuation and Earnings

This table compares Puma Biotechnology and Zynerba Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Puma Biotechnology N/A N/A -$289.01 million ($8.16) -14.90
Zynerba Pharmaceuticals N/A N/A -$28.66 million ($2.62) -3.69

Puma Biotechnology is trading at a lower price-to-earnings ratio than Zynerba Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Puma Biotechnology has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, Zynerba Pharmaceuticals has a beta of 5.46, indicating that its stock price is 446% more volatile than the S&P 500.

Profitability

This table compares Puma Biotechnology and Zynerba Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Puma Biotechnology N/A -217.17% -160.32%
Zynerba Pharmaceuticals N/A -54.35% -48.11%

Summary

Zynerba Pharmaceuticals beats Puma Biotechnology on 6 of the 10 factors compared between the two stocks.

Puma Biotechnology Company Profile

Puma Biotechnology, Inc. is a biopharmaceutical company that focuses on the development and commercialization of products for the treatment of cancer. The Company focuses on in-licensing the development and commercialization rights to over three drug candidates, including PB272 (neratinib (oral)), PB272 (neratinib (intravenous)) and PB357. Neratinib is a potent irreversible tyrosine kinase inhibitor (TKI) that blocks signal transduction through the epidermal growth factor receptors (EGFRs), HER1, HER2 and HER4. Its initial focus is on the development of neratinib as an oral treatment of patients with HER2 positive metastatic breast cancer. It focuses on developing neratinib as an intravenously administered agent. The intravenous version of neratinib resulted in exposure levels of neratinib in pre-clinical models. Its product candidate, PB357, is an orally administered agent that is an irreversible TKI that blocks signal transduction through the epidermal growth factor receptors.

Zynerba Pharmaceuticals Company Profile

Zynerba Pharmaceuticals, Inc. is a specialty pharmaceutical company. The Company is engaged in developing and commercializing transdermal synthetic cannabinoid treatments for patients with high unmet needs. Its development pipeline includes two product candidates: ZYN002 and ZYN001. ZYN002 is a synthetic cannabidiol (CBD), which is a non-psychoactive cannabinoid, formulated as a patent-protected permeation-enhanced gel for transdermal delivery through the skin and into the circulatory system. ZYN002 is in Phase II clinical development in patients with refractory epilepsy, in patients with osteoarthritis of the knee, as well as in patients with Fragile X syndrome. ZYN001 is a pro-drug of tetrahydrocannabinol (THC) that enables transdermal delivery through the skin and into the circulatory system through a patch. ZYN001 is targeting two pain indications, fibromyalgia and peripheral neuropathic pain.

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