Abeona Therapeutics (NASDAQ:ABEO) and Zogenix (NASDAQ:ZGNX) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for Abeona Therapeutics and Zogenix, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Abeona Therapeutics 0 0 10 0 3.00
Zogenix 0 0 10 0 3.00

Abeona Therapeutics currently has a consensus price target of $26.90, suggesting a potential upside of 247.10%. Zogenix has a consensus price target of $74.78, suggesting a potential upside of 82.88%. Given Abeona Therapeutics’ higher probable upside, research analysts clearly believe Abeona Therapeutics is more favorable than Zogenix.

Profitability

This table compares Abeona Therapeutics and Zogenix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Abeona Therapeutics -843.14% -27.01% -25.92%
Zogenix N/A -38.56% -28.83%

Insider and Institutional Ownership

76.4% of Abeona Therapeutics shares are owned by institutional investors. 6.7% of Abeona Therapeutics shares are owned by insiders. Comparatively, 4.6% of Zogenix shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Abeona Therapeutics and Zogenix’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Abeona Therapeutics $840,000.00 442.30 -$27.31 million ($0.66) -11.74
Zogenix $9.82 million 150.69 -$126.81 million ($4.02) -10.27

Abeona Therapeutics has higher earnings, but lower revenue than Zogenix. Abeona Therapeutics is trading at a lower price-to-earnings ratio than Zogenix, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Abeona Therapeutics has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, Zogenix has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500.

Summary

Abeona Therapeutics beats Zogenix on 8 of the 12 factors compared between the two stocks.

About Abeona Therapeutics

Abeona Therapeutics Inc., a clinical-stage biopharmaceutical company, focuses on developing and delivering gene therapy products for severe and life-threatening rare diseases. The company's lead programs are EB-101 (gene-corrected skin grafts) for recessive dystrophic epidermolysis bullosa (RDEB); ABO-102, which are AAV based gene therapies for Sanfilippo syndrome type A; and ABO-101, an adeno-associated virus (AAV) based gene therapies for Sanfilippo syndrome type B. It is also developing ABO-201 gene therapy for juvenile Batten disease; ABO-202 gene therapy for treatment of infantile Batten disease; EB-201 for for epidermolysis bullosa (EB); ABO-301 for Fanconi anemia disorder; and ABO-302 using a novel CRISPR/Cas9-based gene editing approach to gene therapy program for rare blood diseases. Further, it is involved in marketing MuGard, a mucoadhesive oral wound rinse for the management of mucositis, stomatitis, aphthous ulcers, and traumatic ulcers. Abeona Therapeutics Inc. has collaborations with EB Research Partnership and Epidermolysis Bullosa Medical Research Foundation that focus on gene therapy treatments for EB; and Brammer Bio for commercial translation of ABO-102. The company was formerly known as PlasmaTech Biopharmaceuticals, Inc. and changed its name to Abeona Therapeutics Inc. in June 2015. Abeona Therapeutics Inc. was incorporated in 1989 and is based in Dallas, Texas.

About Zogenix

Zogenix, Inc., a pharmaceutical company, develops and commercializes therapies for the treatment of central nervous system disorders in the United States. Its lead product candidate is the ZX008, a low-dose fenfluramine, which is in Phase III clinical trials for the treatment of seizures associated with Dravet syndrome. The company was formerly known as SJ2 Therapeutics, Inc. and changed its name to Zogenix, Inc. in August 2006. Zogenix, Inc. was founded in 2006 and is headquartered in Emeryville, California.

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