Zosano Pharma (NASDAQ:ZSAN) and MEI Pharma (NASDAQ:MEIP) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.
Insider & Institutional Ownership
10.1% of Zosano Pharma shares are owned by institutional investors. Comparatively, 67.6% of MEI Pharma shares are owned by institutional investors. 6.1% of Zosano Pharma shares are owned by company insiders. Comparatively, 4.4% of MEI Pharma shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Zosano Pharma and MEI Pharma's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Zosano Pharma | N/A | N/A | $-37,590,000.00 | ($2.29) | -0.40 |
MEI Pharma | $28.91 million | 13.16 | $-46,010,000.00 | ($0.26) | -13.00 |
Zosano Pharma has higher earnings, but lower revenue than MEI Pharma. MEI Pharma is trading at a lower price-to-earnings ratio than Zosano Pharma, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Zosano Pharma and MEI Pharma, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Zosano Pharma | 0 | 0 | 3 | 0 | 3.00 |
MEI Pharma | 0 | 1 | 6 | 0 | 2.86 |
Zosano Pharma presently has a consensus price target of $2.1667, suggesting a potential upside of 139.15%. MEI Pharma has a consensus price target of $10.60, suggesting a potential upside of 213.61%. Given MEI Pharma's higher probable upside, analysts plainly believe MEI Pharma is more favorable than Zosano Pharma.
Profitability
This table compares Zosano Pharma and MEI Pharma's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Zosano Pharma | N/A | -227.55% | -79.80% |
MEI Pharma | -142.81% | -33.55% | -16.70% |
Risk & Volatility
Zosano Pharma has a beta of 2.98, indicating that its share price is 198% more volatile than the S&P 500. Comparatively, MEI Pharma has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.
Summary
MEI Pharma beats Zosano Pharma on 7 of the 13 factors compared between the two stocks.