Critical Analysis: Zafgen (ZFGN) vs. Its Competitors
Zafgen (NASDAQ: ZFGN) is one of 306 publicly-traded companies in the “Bio Therapeutic Drugs” industry, but how does it weigh in compared to its rivals? We will compare Zafgen to related companies based on the strength of its analyst recommendations, earnings, risk, institutional ownership, profitability, dividends and valuation.
Insider and Institutional Ownership
48.5% of Zafgen shares are held by institutional investors. Comparatively, 50.1% of shares of all “Bio Therapeutic Drugs” companies are held by institutional investors. 21.2% of Zafgen shares are held by company insiders. Comparatively, 16.4% of shares of all “Bio Therapeutic Drugs” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Zafgen and its rivals revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Zafgen Competitors||$290.00 million||$35.57 million||152.79|
Zafgen’s rivals have higher revenue and earnings than Zafgen. Zafgen is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Risk and Volatility
Zafgen has a beta of -1.35, meaning that its share price is 235% less volatile than the S&P 500. Comparatively, Zafgen’s rivals have a beta of 2.91, meaning that their average share price is 191% more volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Zafgen and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Zafgen currently has a consensus target price of $9.00, suggesting a potential upside of 142.59%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 40.35%. Given Zafgen’s higher probable upside, equities research analysts clearly believe Zafgen is more favorable than its rivals.
This table compares Zafgen and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Zafgen rivals beat Zafgen on 7 of the 12 factors compared.
Zafgen, Inc. is a biopharmaceutical company. The Company is focused on improving the health and well-being of patients affected by obesity and complex metabolic disorders. The Company’s lead product candidate, Beloranib, is a twice-weekly subcutaneous injection being developed for the treatment of multiple indications, including severe obesity in rare diseases, such as Prader-Willi syndrome (PWS) and hypothalamic injury-associated obesity (HIAO), including craniopharyngioma-associated obesity. Beloranib is in Phase III stage of development for PWS. It is also developing ZGN-839, a liver-targeted methionine aminopeptidase 2 (MetAP2) inhibitor, for the treatment of nonalcoholic steatohepatitis (NASH) and abdominal obesity, as well as other second-generation MetAP2 inhibitors for the treatment of severe obesity. It is also evaluating additional MetAP2 inhibitors beyond Beloranib as a development candidate for the treatment of severe obesity in the general population.
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