Zentalis Pharmaceuticals (NASDAQ:ZNTL – Get Free Report) and Redhill Biopharma (NASDAQ:RDHL – Get Free Report) are both small-cap healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
Earnings & Valuation
This table compares Zentalis Pharmaceuticals and Redhill Biopharma”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zentalis Pharmaceuticals | $67.43 million | 2.68 | -$137.06 million | ($1.95) | -1.29 |
| Redhill Biopharma | $290,000.00 | 10.48 | -$430,000.00 | $900.00 | 0.00 |
Volatility and Risk
Zentalis Pharmaceuticals has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500. Comparatively, Redhill Biopharma has a beta of 4.91, indicating that its stock price is 391% more volatile than the S&P 500.
Insider and Institutional Ownership
7.2% of Redhill Biopharma shares are owned by institutional investors. 3.8% of Zentalis Pharmaceuticals shares are owned by insiders. Comparatively, 6.8% of Redhill Biopharma shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Zentalis Pharmaceuticals and Redhill Biopharma, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zentalis Pharmaceuticals | 1 | 4 | 5 | 0 | 2.40 |
| Redhill Biopharma | 1 | 0 | 0 | 0 | 1.00 |
Zentalis Pharmaceuticals currently has a consensus price target of $6.75, suggesting a potential upside of 167.86%. Given Zentalis Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Zentalis Pharmaceuticals is more favorable than Redhill Biopharma.
Profitability
This table compares Zentalis Pharmaceuticals and Redhill Biopharma’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zentalis Pharmaceuticals | N/A | -70.18% | -51.46% |
| Redhill Biopharma | N/A | N/A | N/A |
Summary
Redhill Biopharma beats Zentalis Pharmaceuticals on 9 of the 13 factors compared between the two stocks.
About Zentalis Pharmaceuticals
Zentalis Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing small molecule therapeutics for the treatment of various cancers. Its products candidatures include the ZN-c3, an inhibitor of WEE1, a protein tyrosine kinase for the treatment of inhibitor for advanced solid tumors and hematological malignancies; in Phase 2 clinical trial as a monotherapy for the treatment of uterine serous carcinoma indications; Phase 2 clinical trial in Cyclin E1 driven high-grade serous ovarian cancer, fallopian tube, or primary peritoneal cancer; Phase 1/2 clinical trial in combination with PARPi for platinum-resistant ovarian cancer; Phase 1b clinical trial in combination with chemotherapy in platinum-resistant ovarian, and peritoneal or fallopian tube cancer; Phase 1/2 clinical trial in combination with chemotherapy in relapsed or refractory osteosarcoma; Phase 1/2 clinical trial with encorafenib and cetuximab for mutant metastatic colorectal cancer; and Phase 1/2 clinical trial in combination with chemotherapy in pancreatic cancer. The company's products pipeline also includes ZN-d5, an oral small molecule inhibitor of B-cell lymphoma 2, for hematological malignancies and related disorders; and BCL-xL heterobifunctional degrader, a member of the anti-apoptotic BCL-2 proteins, for solid tumors and hematological malignancies. Zentalis Pharmaceuticals, Inc. has licensing agreements and strategic collaborations with Recurium IP Holdings, LLC; Pfizer, Inc.; Zentera Therapeutics; Dana-Farber; and GlaxoSmithKline plc. The company was incorporated in 2014 and is headquartered in New York, New York.
About Redhill Biopharma
RedHill Biopharma Ltd., a specialty biopharmaceutical company, primarily focuses on gastrointestinal and infectious diseases. The company develops and commercializes Talicia for the treatment of H. pylori infection in adults; and Aemcolo for the treatment of travelers' diarrhea in adults. Its pipeline consists of five therapeutic candidates, which are in clinical development include opaganib for treating patients hospitalized with SARS-CoV-2 severe COVID-19 pneumonia, advanced unresectable cholangiocarcinoma, prostate cancer, and nuclear radiation protection; RHB-107 (upamostat) for treating outpatients infected with SARS-CoV-2 (COVID-19 disease) and advanced unresectable cholangiocarcinoma; RHB-104 for Crohn's disease; RHB-102 (Bekinda) for the treatment of acute gastroenteritis and gastritis, irritable bowel syndrome with diarrhea, and oncology support anti-emetic; and RHB-204 for pulmonary nontuberculous mycobacteria infections caused by mycobacterium avium complex. The company was incorporated in 2009 and is headquartered in Tel Aviv, Israel.
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