Reviewing Zymeworks (NASDAQ:ZYME) & Calliditas Therapeutics AB (publ) (NASDAQ:CALT)

Zymeworks (NASDAQ:ZYME) and Calliditas Therapeutics AB (publ) (NASDAQ:CALT) are both small-cap manufacturing companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Zymeworks and Calliditas Therapeutics AB (publ), as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zymeworks	1	1	7	2	2.91
Calliditas Therapeutics AB (publ)	0	0	0	0	0.00

Zymeworks presently has a consensus price target of $38.00, indicating a potential upside of 51.21%. Given Zymeworks’ stronger consensus rating and higher probable upside, research analysts plainly believe Zymeworks is more favorable than Calliditas Therapeutics AB (publ).

Profitability

This table compares Zymeworks and Calliditas Therapeutics AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zymeworks	-126.92%	-37.97%	-25.31%
Calliditas Therapeutics AB (publ)	-30.18%	-212.04%	-27.96%

Risk and Volatility

Zymeworks has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Calliditas Therapeutics AB (publ) has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500.

Earnings & Valuation

This table compares Zymeworks and Calliditas Therapeutics AB (publ)”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zymeworks	$105.96 million	17.32	-$81.13 million	($1.37)	-18.34
Calliditas Therapeutics AB (publ)	$1.60 billion	0.74	-$43.96 million	($1.85)	-21.62

Calliditas Therapeutics AB (publ) has higher revenue and earnings than Zymeworks. Calliditas Therapeutics AB (publ) is trading at a lower price-to-earnings ratio than Zymeworks, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

92.9% of Zymeworks shares are held by institutional investors. Comparatively, 2.8% of Calliditas Therapeutics AB (publ) shares are held by institutional investors. 33.5% of Zymeworks shares are held by company insiders. Comparatively, 2.2% of Calliditas Therapeutics AB (publ) shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Zymeworks beats Calliditas Therapeutics AB (publ) on 11 of the 15 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 Calliditas Therapeutics AB (publ)

Calliditas Therapeutics AB (publ), a commercial-stage bio-pharmaceutical company, focused on identifying, developing, and commercializing novel treatments in orphan indications with an initial focus on renal and hepatic diseases with significant unmet medical needs in the United States, Europe, and Asia. It offers Nefecon (TARPEYO/Kinpeygo), an oral formulation of budesonide to reduce the loss of kidney function in adults with immunoglobulin A nephropathy. The company's lead compound is Setanaxib, a NOX inhibitor that is in Phase 2b clinical trial for the treatment of primary biliary cholangitis; and in Phase 2 clinical trial for the treatment of squamous cell carcinoma of the head and neck cancer and idiopathic pulmonary fibrosis, as well as for solid tumors and Alport Syndrome. Calliditas Therapeutics AB (publ) was incorporated in 2004 and is headquartered in Stockholm, Sweden.