Critical Analysis: Zenas BioPharma (ZBIO) & Its Peers

Zenas BioPharma (NASDAQ:ZBIO) is one of 844 public companies in the “Biotechnology” industry, but how does it contrast to its peers? We will compare Zenas BioPharma to related businesses based on the strength of its earnings, analyst recommendations, dividends, profitability, institutional ownership, valuation and risk.

Earnings and Valuation

This table compares Zenas BioPharma and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Zenas BioPharma	$10.00 million	-$377.74 million	-3.14
Zenas BioPharma Competitors	$705.29 million	$10.71 million	-15.00

Zenas BioPharma’s peers have higher revenue and earnings than Zenas BioPharma. Zenas BioPharma is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Zenas BioPharma and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zenas BioPharma	N/A	-136.40%	-61.40%
Zenas BioPharma Competitors	-12,357.18%	-197.96%	-30.56%

Analyst Recommendations

This is a summary of current recommendations and price targets for Zenas BioPharma and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zenas BioPharma	1	2	6	0	2.56
Zenas BioPharma Competitors	9829	15119	45431	1586	2.54

Zenas BioPharma presently has a consensus target price of $46.71, indicating a potential upside of 65.30%. As a group, “Biotechnology” companies have a potential upside of 102.69%. Given Zenas BioPharma’s peers higher probable upside, analysts plainly believe Zenas BioPharma has less favorable growth aspects than its peers.

Institutional & Insider Ownership

47.9% of shares of all “Biotechnology” companies are owned by institutional investors. 22.0% of Zenas BioPharma shares are owned by insiders. Comparatively, 13.1% of shares of all “Biotechnology” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Zenas BioPharma has a beta of -0.88, suggesting that its stock price is 188% less volatile than the S&P 500. Comparatively, Zenas BioPharma’s peers have a beta of 1.15, suggesting that their average stock price is 15% more volatile than the S&P 500.

Summary

Zenas BioPharma peers beat Zenas BioPharma on 7 of the 12 factors compared.

Zenas BioPharma Company Profile

Zenas BioPharma, Inc. is a clinical-stage global biopharmaceutical company, which engages in the development and commercialization of transformative immunology-based therapies for patients. The company was founded by Lonnie O. Moulder Jr on November 12, 2019 and is headquartered in Waltham, MA.