United Therapeutics (NASDAQ:UTHR – Get Free Report) and Zenas BioPharma (NASDAQ:ZBIO – Get Free Report) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.
Analyst Recommendations
This is a breakdown of current ratings for United Therapeutics and Zenas BioPharma, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Therapeutics | 0 | 2 | 11 | 0 | 2.85 |
| Zenas BioPharma | 1 | 2 | 6 | 0 | 2.56 |
United Therapeutics presently has a consensus target price of $646.00, indicating a potential upside of 29.95%. Zenas BioPharma has a consensus target price of $45.71, indicating a potential upside of 46.90%. Given Zenas BioPharma’s higher possible upside, analysts clearly believe Zenas BioPharma is more favorable than United Therapeutics.
Volatility & Risk
Institutional and Insider Ownership
94.1% of United Therapeutics shares are held by institutional investors. 8.6% of United Therapeutics shares are held by insiders. Comparatively, 22.0% of Zenas BioPharma shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares United Therapeutics and Zenas BioPharma’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United Therapeutics | 41.56% | 20.18% | 17.98% |
| Zenas BioPharma | N/A | -122.45% | -58.04% |
Valuation & Earnings
This table compares United Therapeutics and Zenas BioPharma”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United Therapeutics | $3.18 billion | 6.70 | $1.33 billion | $27.95 | 17.79 |
| Zenas BioPharma | $10.00 million | 202.84 | -$377.74 million | ($8.99) | -3.46 |
United Therapeutics has higher revenue and earnings than Zenas BioPharma. Zenas BioPharma is trading at a lower price-to-earnings ratio than United Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
United Therapeutics beats Zenas BioPharma on 11 of the 14 factors compared between the two stocks.
About United Therapeutics
United Therapeutics Corporation, a biotechnology company, engages in the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases in the United States and internationally. The company offers Tyvaso DPI, an inhaled dry powder via pre-filled and single-use cartridges; Tyvaso, an inhaled solution via ultrasonic nebulizer; Remodulin (treprostinil) injection to treat patients with pulmonary arterial hypertension (PAH) to diminish symptoms associated with exercise; Orenitram, a tablet dosage form of treprostinil, to delay disease progression and improve exercise capacity in PAH patients; and Adcirca, an oral PDE-5 inhibitor to enhance the exercise ability in PAH patients. It also markets and sells Unituxin (dinutuximab) injection, a monoclonal antibody for treating high-risk neuroblastoma; and Remunity Pump, which contains a pump and separate controller for Remodulin. In addition, the company engages in developing RemoPro and Ralinepag for the treatment of PAH; Aurora-GT, a gene therapy product to rebuild the blood vessels in the lungs; and Nebulized Tyvaso, for the treatment of idiopathic pulmonary fibrosis, as well as xenografts, which are development-stage organ products. It has licensing and collaboration agreements with DEKA Research & Development Corp. to develop a semi-disposable system for the subcutaneous delivery of treprostinil; MannKind Corporation to develop and license treprostinil inhalation powder and the Dreamboat device; and Arena Pharmaceuticals, Inc. to develop Ralinepag. The company was incorporated in 1996 and is headquartered in Silver Spring, Maryland.
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.
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