Critical Survey: Zymeworks (NASDAQ:ZYME) vs. IDEAYA Biosciences (NASDAQ:IDYA)

Zymeworks (NASDAQ:ZYMEGet Free Report) and IDEAYA Biosciences (NASDAQ:IDYAGet Free Report) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Valuation and Earnings

This table compares Zymeworks and IDEAYA Biosciences”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zymeworks $105.96 million 17.57 -$81.13 million ($2.02) -12.99
IDEAYA Biosciences $218.71 million 15.10 -$113.70 million ($1.94) -19.38

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

Analyst Recommendations

This is a breakdown of current ratings for Zymeworks and IDEAYA Biosciences, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zymeworks 1 1 9 0 2.73
IDEAYA Biosciences 1 1 13 0 2.80

Zymeworks presently has a consensus target price of $41.00, indicating a potential upside of 56.25%. IDEAYA Biosciences has a consensus target price of $52.69, indicating a potential upside of 40.18%. Given Zymeworks’ higher probable upside, equities analysts clearly believe Zymeworks is more favorable than IDEAYA Biosciences.

Institutional & Insider Ownership

92.9% of Zymeworks shares are held by institutional investors. Comparatively, 98.3% of IDEAYA Biosciences shares are held by institutional investors. 33.5% of Zymeworks shares are held by insiders. Comparatively, 4.7% of IDEAYA Biosciences shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Zymeworks has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, IDEAYA Biosciences has a beta of -0.07, meaning that its stock price is 107% less volatile than the S&P 500.

Profitability

This table compares Zymeworks and IDEAYA Biosciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zymeworks -405.31% -72.30% -37.18%
IDEAYA Biosciences -75.93% -16.73% -15.34%

Summary

IDEAYA Biosciences beats Zymeworks on 8 of the 14 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 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 IDEAYA Biosciences

(Get Free Report)

IDEAYA Biosciences, Inc., a synthetic lethality-focused precision medicine oncology company, discovers and develops targeted therapeutics for patient populations selected using molecular diagnostics in the United States. The company's products in development include IDE196, a protein kinase C inhibitor that is in Phase 2/3 clinical trials for genetically defined cancers having GNAQ or GNA11 gene mutations; IDE397, a methionine adenosyltransferase 2a inhibitor that is in Phase 1/2 clinical trials for patients with solid tumors having methylthioadenosine phosphorylase gene deletions, such as non-small cell lung, bladder, gastric, and esophageal cancers; IDE161, a poly ADP-ribose glycohydrolase inhibitor that is in Phase 1 clinical trial to treat tumors with homologous recombination deficiency (HRD), and other genetic or molecular signatures; GSK101, a Pol Theta Helicase inhibitor that is in Phase 1 clinical trial for the treatment of tumors with BRCA or other homologous recombination, and HRD mutations; and Werner Helicase inhibitors for tumors with high microsatellite instability. It offers preclinical research programs focused on pharmacological inhibition; DECIPHER dual CRISPR library for synthetic lethality target and biomarker discovery; and INQUIRE chemical library and HARMONY machine-learning engines to enhance its drug discovery platform. The company has strategic alliances with GlaxoSmithKline, Pfizer Inc., Novartis International Pharmaceuticals Ltd., Amgen Inc., Gilead Sciences, Inc., Cancer Research UK, and the University of Manchester. IDEAYA Biosciences, Inc. was incorporated in 2015 and is headquartered in South San Francisco, California.

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