Zenas BioPharma (NASDAQ:ZBIO) versus Spruce Biosciences (NASDAQ:SPRB) Financial Survey

Zenas BioPharma (NASDAQ:ZBIO) and Spruce Biosciences (NASDAQ:SPRB) are both small-cap healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Volatility and Risk

Zenas BioPharma has a beta of -0.88, indicating that its stock price is 188% less volatile than the S&P 500. Comparatively, Spruce Biosciences has a beta of 3.57, indicating that its stock price is 257% more volatile than the S&P 500.

Insider and Institutional Ownership

91.7% of Spruce Biosciences shares are owned by institutional investors. 22.0% of Zenas BioPharma shares are owned by insiders. Comparatively, 4.3% of Spruce Biosciences shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Zenas BioPharma and Spruce Biosciences, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zenas BioPharma	1	2	6	0	2.56
Spruce Biosciences	1	0	11	0	2.83

Zenas BioPharma currently has a consensus target price of $46.71, suggesting a potential upside of 62.94%. Spruce Biosciences has a consensus target price of $158.33, suggesting a potential upside of 238.75%. Given Spruce Biosciences’ stronger consensus rating and higher probable upside, analysts clearly believe Spruce Biosciences is more favorable than Zenas BioPharma.

Earnings and Valuation

This table compares Zenas BioPharma and Spruce Biosciences”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zenas BioPharma	$11.00 million	169.87	-$377.74 million	($9.42)	-3.04
Spruce Biosciences	N/A	N/A	-$38.97 million	($33.71)	-1.39

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

Profitability

This table compares Zenas BioPharma and Spruce Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zenas BioPharma	N/A	-144.65%	-59.83%
Spruce Biosciences	N/A	-125.20%	-95.00%

Summary

Spruce Biosciences beats Zenas BioPharma on 8 of the 12 factors compared between the two stocks.

About Zenas BioPharma

Zenas BioPharma is a clinical-stage biopharmaceutical company focused on developing treatments for autoimmune diseases. Founded in 2019 and based in Waltham, Massachusetts, the company describes itself as a global biopharmaceutical business. Its lead investigational medicine, obexelimab, is a bifunctional antibody designed to bind CD19 and FcγRIIb and inhibit B-cell activity. Zenas is developing the drug for autoimmune conditions, including IgG4-related disease; it has not been approved for commercial use.

About Spruce Biosciences

Spruce Biosciences, Inc. is a clinical-stage biopharmaceutical company focused on developing medicines for rare endocrine disorders. The company’s research is centered on conditions in which abnormal hormone production or regulation creates significant health risks and limited treatment options. Its lead investigational product is tildacerfont, an oral, selective corticotropin-releasing factor type 1 receptor antagonist. Spruce has studied tildacerfont as a potential treatment for congenital adrenal hyperplasia, a rare genetic disorder affecting the adrenal glands, and has evaluated its ability to reduce hormone imbalances associated with the disease.