Regeneron Pharmaceuticals (NASDAQ:REGN) and Zai Lab (NASDAQ:ZLAB) are both large-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.
Profitability
This table compares Regeneron Pharmaceuticals and Zai Lab's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Regeneron Pharmaceuticals | 38.28% | 28.97% | 20.11% |
Zai Lab | N/A | N/A | N/A |
Earnings & Valuation
This table compares Regeneron Pharmaceuticals and Zai Lab's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Regeneron Pharmaceuticals | $7.86 billion | 6.68 | $2.12 billion | $21.47 | 22.84 |
Zai Lab | $12.98 million | 1,122.62 | $-195,070,000.00 | ($3.03) | -54.28 |
Regeneron Pharmaceuticals has higher revenue and earnings than Zai Lab. Zai Lab is trading at a lower price-to-earnings ratio than Regeneron Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
85.0% of Regeneron Pharmaceuticals shares are owned by institutional investors. Comparatively, 81.3% of Zai Lab shares are owned by institutional investors. 11.8% of Regeneron Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk & Volatility
Regeneron Pharmaceuticals has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, Zai Lab has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Regeneron Pharmaceuticals and Zai Lab, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Regeneron Pharmaceuticals | 0 | 5 | 14 | 1 | 2.80 |
Zai Lab | 0 | 0 | 5 | 0 | 3.00 |
Regeneron Pharmaceuticals presently has a consensus price target of $644.1739, suggesting a potential upside of 31.35%. Zai Lab has a consensus price target of $197.8460, suggesting a potential upside of 20.29%. Given Regeneron Pharmaceuticals' higher probable upside, research analysts clearly believe Regeneron Pharmaceuticals is more favorable than Zai Lab.
Summary
Regeneron Pharmaceuticals beats Zai Lab on 12 of the 15 factors compared between the two stocks.