Zafgen (NASDAQ: ZFGN) is one of 302 public companies in the “Bio Therapeutic Drugs” industry, but how does it compare to its competitors? We will compare Zafgen to related businesses based on the strength of its valuation, earnings, dividends, profitability, institutional ownership, analyst recommendations and risk.

Profitability

This table compares Zafgen and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zafgen N/A -44.54% -40.97%
Zafgen Competitors -5,338.85% -433.47% -41.63%

Institutional and Insider Ownership

48.5% of Zafgen shares are held by institutional investors. Comparatively, 50.2% of shares of all “Bio Therapeutic Drugs” companies are held by institutional investors. 21.2% of Zafgen shares are held by company insiders. Comparatively, 17.0% of shares of all “Bio Therapeutic Drugs” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Zafgen has a beta of -1.34, indicating that its share price is 234% less volatile than the S&P 500. Comparatively, Zafgen’s competitors have a beta of 6.64, indicating that their average share price is 564% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Zafgen and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zafgen 0 1 1 0 2.50
Zafgen Competitors 770 3089 11294 227 2.71

Zafgen presently has a consensus price target of $9.00, suggesting a potential upside of 147.25%. As a group, “Bio Therapeutic Drugs” companies have a potential upside of 33.29%. Given Zafgen’s higher probable upside, equities research analysts plainly believe Zafgen is more favorable than its competitors.

Earnings & Valuation

This table compares Zafgen and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Zafgen N/A -$57.87 million -1.94
Zafgen Competitors $290.00 million $35.57 million 2.02

Zafgen’s competitors have higher revenue and earnings than Zafgen. Zafgen 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

Zafgen competitors beat Zafgen on 7 of the 12 factors compared.

About Zafgen

Zafgen, Inc. is a biopharmaceutical company. The Company is focused on improving the health and well-being of patients affected by obesity and complex metabolic disorders. The Company’s lead product candidate, Beloranib, is a twice-weekly subcutaneous injection being developed for the treatment of multiple indications, including severe obesity in rare diseases, such as Prader-Willi syndrome (PWS) and hypothalamic injury-associated obesity (HIAO), including craniopharyngioma-associated obesity. Beloranib is in Phase III stage of development for PWS. It is also developing ZGN-839, a liver-targeted methionine aminopeptidase 2 (MetAP2) inhibitor, for the treatment of nonalcoholic steatohepatitis (NASH) and abdominal obesity, as well as other second-generation MetAP2 inhibitors for the treatment of severe obesity. It is also evaluating additional MetAP2 inhibitors beyond Beloranib as a development candidate for the treatment of severe obesity in the general population.

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