Reviewing Zymeworks (NYSE:ZYME) and 9 Meters Biopharma (NASDAQ:NMTR)

Zymeworks (NYSE:ZYMEGet Free Report) and 9 Meters Biopharma (NASDAQ:NMTRGet Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

93.6% of Zymeworks shares are held by institutional investors. Comparatively, 22.3% of 9 Meters Biopharma shares are held by institutional investors. 1.2% of Zymeworks shares are held by insiders. Comparatively, 2.4% of 9 Meters Biopharma shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Zymeworks and 9 Meters Biopharma, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zymeworks 0 2 1 0 2.33
9 Meters Biopharma 0 2 0 0 2.00

Zymeworks currently has a consensus target price of $13.20, suggesting a potential upside of 22.11%. 9 Meters Biopharma has a consensus target price of $1.70, suggesting a potential upside of ∞. Given 9 Meters Biopharma’s higher possible upside, analysts clearly believe 9 Meters Biopharma is more favorable than Zymeworks.

Profitability

This table compares Zymeworks and 9 Meters Biopharma’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zymeworks -156.12% -26.20% -20.29%
9 Meters Biopharma N/A -584.97% -159.45%

Volatility and Risk

Zymeworks has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, 9 Meters Biopharma has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.

Valuation & Earnings

This table compares Zymeworks and 9 Meters Biopharma’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zymeworks $76.01 million 10.04 -$118.67 million ($1.74) -6.21
9 Meters Biopharma N/A N/A -$43.77 million ($3.46) N/A

9 Meters Biopharma has lower revenue, but higher earnings than Zymeworks. Zymeworks is trading at a lower price-to-earnings ratio than 9 Meters Biopharma, indicating that it is currently the more affordable of the two stocks.

Summary

Zymeworks beats 9 Meters Biopharma on 7 of the 13 factors compared between the two stocks.

About Zymeworks

(Get Free Report)

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 human epidermal growth factor receptor 2 (HER2) that is in Phase 1, Phase 2, and Phase 3 clinical trials, including certain ongoing pivotal clinical trials; and zanidatamab zovodotin, a HER2 -targeted antibody-drug conjugate that is in Phase 2 clinical trial for the treatment of advanced or metastatic HER2-expressing tumors. It also develops a pipeline of preclinical product candidates and discovery-stage programs in oncology, including immuno-oncology agents and other therapeutic areas. Zymeworks Inc. has strategic partnerships and collaborations with BeiGene, Ltd.; Celgene Corporation; Celgene Alpine Investment Co. LLC; GlaxoSmithKline Intellectual Property Development Limited; Daiichi Sankyo Co., Ltd.; Janssen Biotech, Inc.; LEO Pharma A/S; Iconic Therapeutics, Inc.; Merck Sharp & Dohme Research GmbH; and Atreca, Inc. Zymeworks Inc. was incorporated in 2003 and is based in Middletown, Delaware.

About 9 Meters Biopharma

(Get Free Report)

9 Meters Biopharma, Inc., a clinical-stage biopharmaceutical company, focuses on treatments for people with rare digestive diseases, gastrointestinal conditions with unmet needs, and debilitating disorders in North America. Its lead product candidate is Vurolenatide, a long-acting injectable glucagon-like-peptide-1 that is in Phase 3 clinical trial to treat short bowel syndrome. The company is developing NM-136, a humanized monoclonal antibody for the treatment of obesity and obesity-related disorders; NM-102, a small molecule peptide to prevent antigens from trafficking into systemic circulation; and NM-003, a proprietary long-acting glucagon-like peptide-2 receptor agonist for prevention of acute graft versus host disease. Its partnered product is Larazotide, an 8-amino acid peptide, which is in Phase 2 clinical trial for treatment of multi-system inflammatory syndrome. The company has licensing agreements with Amunix, MHS Care Innovation LLC, Alba Therapeutics Corporation, and EBRIS. 9 Meters Biopharma, Inc. is headquartered in Raleigh, North Carolina. On July 17, 2023, 9 Meters Biopharma, Inc. filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the Eastern District of North Carolina.

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