Anixa Biosciences (NASDAQ:ANIX) versus Zai Lab (NASDAQ:ZLAB) Financial Contrast

Zai Lab (NASDAQ:ZLAB) and Anixa Biosciences (NASDAQ:ANIX) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Zai Lab and Anixa Biosciences, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zai Lab	1	1	4	1	2.71
Anixa Biosciences	1	1	3	0	2.40

Zai Lab currently has a consensus price target of $37.25, suggesting a potential upside of 53.49%. Anixa Biosciences has a consensus price target of $8.00, suggesting a potential upside of 185.71%. Given Anixa Biosciences’ higher probable upside, analysts clearly believe Anixa Biosciences is more favorable than Zai Lab.

Institutional & Insider Ownership

41.6% of Zai Lab shares are owned by institutional investors. Comparatively, 29.1% of Anixa Biosciences shares are owned by institutional investors. 4.9% of Zai Lab shares are owned by insiders. Comparatively, 26.4% of Anixa Biosciences shares are owned by 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.

Volatility and Risk

Zai Lab has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Anixa Biosciences has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500.

Profitability

This table compares Zai Lab and Anixa Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zai Lab	-41.86%	-27.43%	-16.72%
Anixa Biosciences	N/A	-76.59%	-67.80%

Valuation & Earnings

This table compares Zai Lab and Anixa Biosciences”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zai Lab	$460.16 million	6.00	-$175.54 million	($1.71)	-14.19
Anixa Biosciences	$210,000.00	463.47	-$10.93 million	($0.32)	-8.75

Anixa Biosciences has lower revenue, but higher earnings than Zai Lab. Zai Lab is trading at a lower price-to-earnings ratio than Anixa Biosciences, indicating that it is currently the more affordable of the two stocks.

Summary

Zai Lab beats Anixa Biosciences on 8 of the 15 factors compared between the two stocks.

About Zai Lab

Zai Lab Limited develops and commercializes therapies to treat oncology, autoimmune disorders, infectious diseases, and neuroscience. Its commercial products include Zejula, an orally administered poly polymerase 1/2 inhibitor; Optune, a cancer therapy that uses electric fields tuned to specific frequencies to kill tumor cells; NUZYRA for acute bacterial skin and skin structure infections, and community acquired bacterial pneumonia; Qinlock to treat gastrointestinal stromal tumors, and VYVGART, a human IgG1 antibody fragment for myesthenia gravis. The company also develops Tumor Treating Fields, a portable device for delivery of electric fields; Repotrectinib, a tyrosine kinase inhibitor (TKI) to target ROS1 and TRK A/B/C in TKI-naïve- or -pretreated cancer patients; Tisotumab vedotin, an antibody drug conjugate; Adagrasib for treating KRAS-G12C-mutated NSCLC, colorectal cancer, and pancreatic cancer; and Bemarituzumab to treat gastric and gastroesophageal junction cancer patients. In addition, it develops Sulbactam/durlobactam, a combination of a beta-lactam antibiotic and a beta-lactamase inhibitor for the treatment of serious infections caused by Acinetobacter; KarXT for the treatment of psychiatric and neurological conditions. It has license and collaboration agreement with Tesaro, Inc. to develop, manufacture, and commercialize niraparib; NovoCure to develop and commercialize Tumor Treating Fields; Deciphera to develop and commercialize ripretinib; Paratek Bermuda Ltd. to develop, manufacture, and commercialize omadacycline; argenx, to develop and commercialize efgartigimod; BMS to develop and commercialize tisotumab vedotin and repotrectinib; Mirati to research, develop, manufacture, and commercialize adagrasib; Amgen to develop and commercialize bemarituzumab; and Innoviva to develop and commercialize Sulbactam-Durlobactam; Karuna to develop and commercialize KarXT. The company was incorporated in 2013 and is headquartered in Shanghai, China.

About Anixa Biosciences

Anixa Biosciences, Inc., a biotechnology company, develops therapies and vaccines focusing on critical unmet needs in oncology and infectious diseases. The company's therapeutics programs include the development of a chimeric endocrine receptor T-cell therapy, a novel form of chimeric antigen receptor T-cell (CAR-T) technology focusing on the treatment of ovarian cancer. Its vaccine programs comprise the development of a vaccine against triple negative breast cancer; and a preventative vaccine against ovarian cancer. The company is also developing immuno-therapy drugs against cancer. The company was formerly known as ITUS Corporation and changed its name to Anixa Biosciences, Inc. in October 2018. Anixa Biosciences, Inc. was incorporated in 1982 and is based in San Jose, California.