Analyzing Zymeworks (ZYME) and Its Competitors

Zymeworks (NASDAQ:ZYME) is one of 451 public companies in the “Pharmaceutical Preparations” industry, but how does it weigh in compared to its competitors? We will compare Zymeworks to similar businesses based on the strength of its analyst recommendations, valuation, dividends, profitability, institutional ownership, earnings and risk.

Profitability

This table compares Zymeworks and its competitors’ 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%	-359.63%	-43.39%

Volatility and Risk

Zymeworks has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, Zymeworks’ competitors have a beta of 10.34, indicating that their average share price is 934% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Zymeworks and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zymeworks	1	1	0	3	3.00
Zymeworks Competitors	4791	9961	15999	371	2.38

As a group, “Pharmaceutical Preparations” companies have a potential upside of 123.24%. Given Zymeworks’ competitors higher probable upside, analysts plainly believe Zymeworks has less favorable growth aspects than its competitors.

Insider and Institutional 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 insiders. Comparatively, 13.8% of shares of all “Pharmaceutical Preparations” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Zymeworks and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Zymeworks	$76.30 million	-$122.69 million	-19.71
Zymeworks Competitors	$439.19 million	-$68.89 million	-9.29

Zymeworks’ competitors have higher revenue and earnings than Zymeworks. Zymeworks is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Zymeworks competitors 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.