Analyzing Otsuka (OTCMKTS:OTSKY) & Zentalis Pharmaceuticals (NASDAQ:ZNTL)

Zentalis Pharmaceuticals (NASDAQ:ZNTL) and Otsuka (OTCMKTS:OTSKY) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Zentalis Pharmaceuticals and Otsuka, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zentalis Pharmaceuticals	1	3	6	1	2.64
Otsuka	1	1	1	1	2.50

Zentalis Pharmaceuticals currently has a consensus target price of $7.50, suggesting a potential upside of 264.08%. Given Zentalis Pharmaceuticals’ stronger consensus rating and higher possible upside, research analysts plainly believe Zentalis Pharmaceuticals is more favorable than Otsuka.

Risk and Volatility

Zentalis Pharmaceuticals has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500. Comparatively, Otsuka has a beta of 0.09, meaning that its stock price is 91% less volatile than the S&P 500.

Profitability

This table compares Zentalis Pharmaceuticals and Otsuka’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zentalis Pharmaceuticals	N/A	-70.18%	-51.46%
Otsuka	15.50%	12.86%	9.59%

Earnings and Valuation

This table compares Zentalis Pharmaceuticals and Otsuka”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zentalis Pharmaceuticals	$67.43 million	2.19	-$137.06 million	($1.95)	-1.06
Otsuka	$16.51 billion	2.50	$2.43 billion	$2.49	15.43

Otsuka has higher revenue and earnings than Zentalis Pharmaceuticals. Zentalis Pharmaceuticals is trading at a lower price-to-earnings ratio than Otsuka, indicating that it is currently the more affordable of the two stocks.

Summary

Otsuka beats Zentalis Pharmaceuticals on 8 of the 12 factors compared between the two stocks.

About Zentalis Pharmaceuticals

Zentalis Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing small molecule therapeutics for the treatment of various cancers. Its products candidatures include the ZN-c3, an inhibitor of WEE1, a protein tyrosine kinase for the treatment of inhibitor for advanced solid tumors and hematological malignancies; in Phase 2 clinical trial as a monotherapy for the treatment of uterine serous carcinoma indications; Phase 2 clinical trial in Cyclin E1 driven high-grade serous ovarian cancer, fallopian tube, or primary peritoneal cancer; Phase 1/2 clinical trial in combination with PARPi for platinum-resistant ovarian cancer; Phase 1b clinical trial in combination with chemotherapy in platinum-resistant ovarian, and peritoneal or fallopian tube cancer; Phase 1/2 clinical trial in combination with chemotherapy in relapsed or refractory osteosarcoma; Phase 1/2 clinical trial with encorafenib and cetuximab for mutant metastatic colorectal cancer; and Phase 1/2 clinical trial in combination with chemotherapy in pancreatic cancer. The company's products pipeline also includes ZN-d5, an oral small molecule inhibitor of B-cell lymphoma 2, for hematological malignancies and related disorders; and BCL-xL heterobifunctional degrader, a member of the anti-apoptotic BCL-2 proteins, for solid tumors and hematological malignancies. Zentalis Pharmaceuticals, Inc. has licensing agreements and strategic collaborations with Recurium IP Holdings, LLC; Pfizer, Inc.; Zentera Therapeutics; Dana-Farber; and GlaxoSmithKline plc. The company was incorporated in 2014 and is headquartered in New York, New York.

About Otsuka

Otsuka Holdings Co., Ltd. engages in the pharmaceuticals, nutraceuticals, consumer products, and other businesses worldwide. The company develops pharmaceutical products in the fields of psychiatry, neurology, oncology, cardiovascular and renal system, digestive system, ophthalmology, and diagnostics, as well as intravenous solutions and medical devices. It also provides clinical testing, medical equipment, food products, cosmetics, functional food products, chemical products, soft drinks, beverages, analytical and measurement instruments, nutritional products, vehicle headlight testers, synthetic resin molded products, paper products, and insecticide and toiletry products. In addition, the company offers IT solution services; adhesive tapes; flaky titanate and compounds; IV solutions; infusion and clinical nutrition products; hydrazine; plant-based food products; reinsurance underwriting services; wine; stable isotopes; food supplements; urinary tract health products; software and services for management of mental healthcare systems; anticancer drugs; terracess; bio-pesticides; dietetic food products; spring and mineral water; and polyolefin foams. Further, it engages in the warehousing and transport, medical device operational management, shared service, environmental health management, and venture capital and incubation businesses; rental of medical devices and related products; purchase and sale of agricultural products; import and export trading business; tuberculosis research and development activities; manufacturing and development of xenotransplantation products; and processing and marketing of functional films, as well as planning, design, production, and construction of ceramic boards and arts, ceramic walls, reliefs, terracotta, ceramic OT and portraits, and ceramic sign boards; and operation of travel agency, and Hotel Ridge and California Table. Otsuka Holdings Co., Ltd. was founded in 1921 and is headquartered in Tokyo, Japan.