Hookipa Pharma (NASDAQ:HOOK) and Zymeworks (NYSE:ZYME) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Hookipa Pharma and Zymeworks, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Hookipa Pharma | 0 | 0 | 7 | 0 | 3.00 |
| Zymeworks | 0 | 3 | 7 | 1 | 2.82 |
Hookipa Pharma currently has a consensus price target of $21.1429, suggesting a potential upside of 66.61%. Zymeworks has a consensus price target of $51.50, suggesting a potential upside of 67.59%. Given Zymeworks' higher possible upside, analysts plainly believe Zymeworks is more favorable than Hookipa Pharma.
Insider & Institutional Ownership
33.4% of Hookipa Pharma shares are owned by institutional investors. Comparatively, 75.1% of Zymeworks shares are owned by institutional investors. 4.0% of Hookipa Pharma shares are owned by insiders. Comparatively, 4.2% of Zymeworks shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Hookipa Pharma and Zymeworks' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Hookipa Pharma | -232.00% | -39.58% | -31.33% |
| Zymeworks | -569.13% | -44.06% | -34.36% |
Earnings & Valuation
This table compares Hookipa Pharma and Zymeworks' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Hookipa Pharma | $11.94 million | 27.58 | $-43,040,000.00 | ($2.41) | -5.26 |
| Zymeworks | $29.54 million | 47.68 | $-145,440,000.00 | ($3.83) | -7.97 |
Hookipa Pharma has higher earnings, but lower revenue than Zymeworks. Zymeworks is trading at a lower price-to-earnings ratio than Hookipa Pharma, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Hookipa Pharma has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Zymeworks has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.
Summary
Hookipa Pharma beats Zymeworks on 8 of the 14 factors compared between the two stocks.
