Analyzing Zymeworks (ZYME) & Its Peers

Zymeworks (NASDAQ:ZYME) is one of 452 publicly-traded companies in the “Pharmaceutical Preparations” industry, but how does it compare to its rivals? We will compare Zymeworks to similar businesses based on the strength of its earnings, risk, analyst recommendations, dividends, profitability, institutional ownership and valuation.

Risk & Volatility

Zymeworks has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, Zymeworks’ rivals have a beta of 10.24, suggesting that their average stock price is 924% more volatile than the S&P 500.

Earnings and Valuation

This table compares Zymeworks and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Zymeworks	$122.87 million	-$122.69 million	-16.97
Zymeworks Competitors	$439.11 million	-$68.88 million	-9.37

Zymeworks’ rivals have higher revenue and earnings than Zymeworks. Zymeworks 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.

Institutional and Insider Ownership

92.9% of Zymeworks shares are held by institutional investors. Comparatively, 39.5% of shares of all “Pharmaceutical Preparations” companies are held by institutional investors. 1.9% of Zymeworks shares are held by company insiders. Comparatively, 13.8% of shares of all “Pharmaceutical Preparations” 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.

Analyst Ratings

This is a breakdown of current ratings for Zymeworks and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zymeworks	1	1	0	3	3.00
Zymeworks Competitors	4797	9964	16002	371	2.38

As a group, “Pharmaceutical Preparations” companies have a potential upside of 116.04%. Given Zymeworks’ rivals higher probable upside, analysts plainly believe Zymeworks has less favorable growth aspects than its rivals.

Profitability

This table compares Zymeworks and its rivals’ 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%	-359.57%	-43.35%

Summary

Zymeworks rivals 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.