Zai Lab (NASDAQ:ZLAB – Get Free Report) and Greenwich LifeSciences (NASDAQ:GLSI – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Zai Lab and Greenwich LifeSciences, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zai Lab | 0 | 0 | 5 | 0 | 3.00 |
| Greenwich LifeSciences | 0 | 0 | 1 | 0 | 3.00 |
Zai Lab presently has a consensus target price of $64.22, suggesting a potential upside of 351.64%. Greenwich LifeSciences has a consensus target price of $36.00, suggesting a potential upside of 179.29%. Given Zai Lab’s higher probable upside, equities research analysts plainly believe Zai Lab is more favorable than Greenwich LifeSciences.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zai Lab | $266.72 million | 5.29 | -$334.62 million | ($3.45) | -4.12 |
| Greenwich LifeSciences | N/A | N/A | -$7.82 million | ($0.70) | -18.41 |
Greenwich LifeSciences has lower revenue, but higher earnings than Zai Lab. Greenwich LifeSciences is trading at a lower price-to-earnings ratio than Zai Lab, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Zai Lab and Greenwich LifeSciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zai Lab | -125.46% | -37.07% | -30.72% |
| Greenwich LifeSciences | N/A | -80.50% | -78.56% |
Volatility and Risk
Zai Lab has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Greenwich LifeSciences has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.
Insider & Institutional Ownership
41.7% of Zai Lab shares are held by institutional investors. Comparatively, 4.2% of Greenwich LifeSciences shares are held by institutional investors. 5.2% of Zai Lab shares are held by insiders. Comparatively, 52.9% of Greenwich LifeSciences 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.
Summary
Zai Lab beats Greenwich LifeSciences on 7 of the 12 factors compared between the two stocks.
About Zai Lab
Zai Lab Limited develops and commercializes therapies to treat oncology, autoimmune disorders, infectious diseases, and neuroscience. Its commercial products include Zejula, an orally administered poly polymerase 1/2 inhibitor; Optune, a cancer therapy that uses electric fields tuned to specific frequencies to kill tumor cells; NUZYRA for acute bacterial skin and skin structure infections, and community acquired bacterial pneumonia; Qinlock to treat gastrointestinal stromal tumors, and VYVGART, a human IgG1 antibody fragment for myesthenia gravis. The company also develops Tumor Treating Fields, a portable device for delivery of electric fields; Repotrectinib, a tyrosine kinase inhibitor (TKI) to target ROS1 and TRK A/B/C in TKI-naïve- or -pretreated cancer patients; Tisotumab vedotin, an antibody drug conjugate; Adagrasib for treating KRAS-G12C-mutated NSCLC, colorectal cancer, and pancreatic cancer; and Bemarituzumab to treat gastric and gastroesophageal junction cancer patients. In addition, it develops Sulbactam/durlobactam, a combination of a beta-lactam antibiotic and a beta-lactamase inhibitor for the treatment of serious infections caused by Acinetobacter; KarXT for the treatment of psychiatric and neurological conditions. It has license and collaboration agreement with Tesaro, Inc. to develop, manufacture, and commercialize niraparib; NovoCure to develop and commercialize Tumor Treating Fields; Deciphera to develop and commercialize ripretinib; Paratek Bermuda Ltd. to develop, manufacture, and commercialize omadacycline; argenx, to develop and commercialize efgartigimod; BMS to develop and commercialize tisotumab vedotin and repotrectinib; Mirati to research, develop, manufacture, and commercialize adagrasib; Amgen to develop and commercialize bemarituzumab; and Innoviva to develop and commercialize Sulbactam-Durlobactam; Karuna to develop and commercialize KarXT. The company was incorporated in 2013 and is headquartered in Shanghai, China.
About Greenwich LifeSciences
Greenwich LifeSciences, Inc., a clinical-stage biopharmaceutical company, focuses on the development of novel cancer immunotherapies for breast cancer and other HER2/neu-expressing cancers. Its lead product candidate is the GP2, an immunotherapy, which is in Phase III clinical trial to prevent breast cancer recurrences in patients who have previously undergone surgery. The company was formerly known as Norwell, Inc. and changed its name to Greenwich LifeSciences, Inc. in March 2018. Greenwich LifeSciences, Inc. was incorporated in 2006 and is headquartered in Stafford, Texas.
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