Zai Lab (NASDAQ:ZLAB – Get Free Report) and Greenwich LifeSciences (NASDAQ:GLSI – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.
Insider and Institutional Ownership
41.7% of Zai Lab shares are owned by institutional investors. Comparatively, 4.2% of Greenwich LifeSciences shares are owned by institutional investors. 5.2% of Zai Lab shares are owned by insiders. Comparatively, 52.9% of Greenwich LifeSciences shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Zai Lab and Greenwich LifeSciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zai Lab | -125.46% | -37.07% | -30.72% |
| Greenwich LifeSciences | N/A | -80.50% | -78.56% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zai Lab | $266.72 million | 5.29 | -$334.62 million | ($3.45) | -4.12 |
| Greenwich LifeSciences | N/A | N/A | -$7.82 million | ($0.70) | -18.41 |
Greenwich LifeSciences has lower revenue, but higher earnings than Zai Lab. Greenwich LifeSciences is trading at a lower price-to-earnings ratio than Zai Lab, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Zai Lab has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Greenwich LifeSciences has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Zai Lab and Greenwich LifeSciences, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zai Lab | 0 | 0 | 5 | 0 | 3.00 |
| Greenwich LifeSciences | 0 | 0 | 1 | 0 | 3.00 |
Zai Lab currently has a consensus price target of $64.22, suggesting a potential upside of 351.64%. Greenwich LifeSciences has a consensus price target of $36.00, suggesting a potential upside of 179.29%. Given Zai Lab’s higher probable upside, analysts clearly believe Zai Lab is more favorable than Greenwich LifeSciences.
Summary
Zai Lab beats Greenwich LifeSciences on 7 of the 12 factors compared between the two stocks.
About Zai Lab
Zai Lab Limited develops and commercializes therapies to treat oncology, autoimmune disorders, infectious diseases, and neuroscience. Its commercial products include Zejula, an orally administered poly polymerase 1/2 inhibitor; Optune, a cancer therapy that uses electric fields tuned to specific frequencies to kill tumor cells; NUZYRA for acute bacterial skin and skin structure infections, and community acquired bacterial pneumonia; Qinlock to treat gastrointestinal stromal tumors, and VYVGART, a human IgG1 antibody fragment for myesthenia gravis. The company also develops Tumor Treating Fields, a portable device for delivery of electric fields; Repotrectinib, a tyrosine kinase inhibitor (TKI) to target ROS1 and TRK A/B/C in TKI-naïve- or -pretreated cancer patients; Tisotumab vedotin, an antibody drug conjugate; Adagrasib for treating KRAS-G12C-mutated NSCLC, colorectal cancer, and pancreatic cancer; and Bemarituzumab to treat gastric and gastroesophageal junction cancer patients. In addition, it develops Sulbactam/durlobactam, a combination of a beta-lactam antibiotic and a beta-lactamase inhibitor for the treatment of serious infections caused by Acinetobacter; KarXT for the treatment of psychiatric and neurological conditions. It has license and collaboration agreement with Tesaro, Inc. to develop, manufacture, and commercialize niraparib; NovoCure to develop and commercialize Tumor Treating Fields; Deciphera to develop and commercialize ripretinib; Paratek Bermuda Ltd. to develop, manufacture, and commercialize omadacycline; argenx, to develop and commercialize efgartigimod; BMS to develop and commercialize tisotumab vedotin and repotrectinib; Mirati to research, develop, manufacture, and commercialize adagrasib; Amgen to develop and commercialize bemarituzumab; and Innoviva to develop and commercialize Sulbactam-Durlobactam; Karuna to develop and commercialize KarXT. The company was incorporated in 2013 and is headquartered in Shanghai, China.
About Greenwich LifeSciences
Greenwich LifeSciences, Inc., a clinical-stage biopharmaceutical company, focuses on the development of novel cancer immunotherapies for breast cancer and other HER2/neu-expressing cancers. Its lead product candidate is the GP2, an immunotherapy, which is in Phase III clinical trial to prevent breast cancer recurrences in patients who have previously undergone surgery. The company was formerly known as Norwell, Inc. and changed its name to Greenwich LifeSciences, Inc. in March 2018. Greenwich LifeSciences, Inc. was incorporated in 2006 and is headquartered in Stafford, Texas.
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