Zenas BioPharma (NASDAQ:ZBIO – Get Free Report) and MacroGenics (NASDAQ:MGNX – Get Free Report) are both small-cap healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.
Earnings and Valuation
This table compares Zenas BioPharma and MacroGenics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zenas BioPharma | $10.00 million | 184.59 | -$377.74 million | ($8.99) | -3.15 |
| MacroGenics | $175.14 million | 1.29 | -$74.62 million | ($0.22) | -16.11 |
Risk & Volatility
Zenas BioPharma has a beta of -0.9, indicating that its stock price is 190% less volatile than the S&P 500. Comparatively, MacroGenics has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for Zenas BioPharma and MacroGenics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zenas BioPharma | 1 | 2 | 6 | 0 | 2.56 |
| MacroGenics | 1 | 3 | 2 | 0 | 2.17 |
Zenas BioPharma presently has a consensus target price of $46.71, suggesting a potential upside of 64.95%. MacroGenics has a consensus target price of $6.33, suggesting a potential upside of 78.66%. Given MacroGenics’ higher probable upside, analysts clearly believe MacroGenics is more favorable than Zenas BioPharma.
Profitability
This table compares Zenas BioPharma and MacroGenics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zenas BioPharma | N/A | -122.45% | -58.04% |
| MacroGenics | -8.70% | -109.26% | -18.70% |
Institutional and Insider Ownership
96.9% of MacroGenics shares are owned by institutional investors. 22.0% of Zenas BioPharma shares are owned by company insiders. Comparatively, 13.6% of MacroGenics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
MacroGenics beats Zenas BioPharma on 8 of the 14 factors compared between the two stocks.
About Zenas BioPharma
Zenas BioPharma, Inc. is a clinical-stage global biopharmaceutical company, which engages in the development and commercialization of transformative immunology-based therapies for patients. The company was founded by Lonnie O. Moulder Jr on November 12, 2019 and is headquartered in Waltham, MA.
About MacroGenics
MacroGenics, Inc., a biopharmaceutical company, develops, manufactures, and commercializes antibody-based therapeutics to treat cancer in the United States. Its approved product is MARGENZA (margetuximab-cmkb), a human epidermal growth factor receptor 2 (HER2) receptor antagonist indicated, in combination with chemotherapy, for the treatment of adult patients with metastatic HER2-positive breast cancer who have received two or more prior anti-HER2 regimens. The company's pipeline of immuno-oncology product candidates includes MGC018, an antibody drug conjugate (ADC), which targets solid tumors expressing B7-H3; Enoblituzumab, a monoclonal antibody that targets B7-H3; and MGD024, an investigational bispecific CD123 × CD3 DART molecule to minimize cytokine-release syndrome for patients with hematologic malignancies. In addition, it develops Lorigerlimab, a monoclonal antibody that targets the immune checkpoints PD-1 and cytotoxic T-lymphocyte-associated protein 4; Tebotelimab, an investigational tetravalent DART molecule for PD-1 and lymphocyte-activation gene 3; Retifanlimab, a humanized monoclonal antibody targeting programmed death receptor-1; and IMGC936, an ADC that targets ADAM9, a cell surface protein over-expressed in various solid tumor types. Further, the company develops MGD014 and MGD020, a DART molecule to target the envelope protein of human immunodeficiency virus infected cells and CD3 on T cells; Teplizumab for the treatment of type 1 diabetes; and PRV-3279, a CD32B × CD79B DART molecule for the treatment of autoimmune indications. It has collaborations with Incyte Corporation; Zai Lab Limited; I-Mab Biopharma; and Janssen Biotech, Inc. The company was incorporated in 2000 and is headquartered in Rockville, Maryland.
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