Financial Contrast: Acerus Pharmaceuticals (OTCMKTS:ASPCF) versus Zymeworks (NASDAQ:ZYME)

Zymeworks (NASDAQ:ZYME) and Acerus Pharmaceuticals (OTCMKTS:ASPCF) are both small-cap manufacturing companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Earnings and Valuation

This table compares Zymeworks and Acerus Pharmaceuticals”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zymeworks	$134.48 million	14.86	-$122.69 million	($0.84)	-31.80
Acerus Pharmaceuticals	$2.12 million	0.80	-$33.82 million	($3.57)	-0.06

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

Insider and Institutional Ownership

92.9% of Zymeworks shares are held by institutional investors. 33.5% of Zymeworks shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Zymeworks and Acerus Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zymeworks	1	2	0	2	2.60
Acerus Pharmaceuticals	0	0	0	0	0.00

Volatility & Risk

Zymeworks has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Acerus Pharmaceuticals has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.

Profitability

This table compares Zymeworks and Acerus Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zymeworks	-59.96%	-21.59%	-16.52%
Acerus Pharmaceuticals	-924.33%	N/A	-74.62%

Summary

Zymeworks beats Acerus Pharmaceuticals on 10 of the 13 factors compared between the two stocks.

About Zymeworks

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.

About Acerus Pharmaceuticals

Acerus Pharmaceuticals Corp. is a pharmaceutical company. The firm is focused on the commercialization and development of prescription products that improve patient experience, with a focus in the field of men’s health. It focuses on therapeutics for urology, andrology, and endocrinology. Its products include Estrace and Natesto. The company was founded by Bruce D. Brydon, Rolf K. Reininghaus and Mark L. Thompson on September 9, 2008 and is headquartered in Mississauga, Canada.