Zentalis Pharmaceuticals (NASDAQ:ZNTL – Get Free Report) and Johnson & Johnson (NYSE:JNJ – Get Free Report) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Zentalis Pharmaceuticals and Johnson & Johnson, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zentalis Pharmaceuticals | 1 | 3 | 6 | 0 | 2.50 |
| Johnson & Johnson | 0 | 6 | 18 | 1 | 2.80 |
Zentalis Pharmaceuticals presently has a consensus price target of $7.50, suggesting a potential upside of 194.12%. Johnson & Johnson has a consensus price target of $276.22, suggesting a potential upside of 6.96%. Given Zentalis Pharmaceuticals’ higher probable upside, research analysts clearly believe Zentalis Pharmaceuticals is more favorable than Johnson & Johnson.
Risk and Volatility
Institutional & Insider Ownership
69.6% of Johnson & Johnson shares are held by institutional investors. 3.8% of Zentalis Pharmaceuticals shares are held by insiders. Comparatively, 0.2% of Johnson & Johnson shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Zentalis Pharmaceuticals and Johnson & Johnson’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% |
| Johnson & Johnson | 21.48% | 32.42% | 13.35% |
Valuation and Earnings
This table compares Zentalis Pharmaceuticals and Johnson & Johnson”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zentalis Pharmaceuticals | $67.43 million | 2.71 | -$137.06 million | ($1.95) | -1.31 |
| Johnson & Johnson | $94.19 billion | 6.61 | $26.80 billion | $8.63 | 29.92 |
Johnson & Johnson has higher revenue and earnings than Zentalis Pharmaceuticals. Zentalis Pharmaceuticals is trading at a lower price-to-earnings ratio than Johnson & Johnson, indicating that it is currently the more affordable of the two stocks.
Summary
Johnson & Johnson beats Zentalis Pharmaceuticals on 12 of the 15 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 Johnson & Johnson
Johnson & Johnson is a holding company, which engages in the research, development, manufacture, and sale of products in the healthcare field. It operates through the Innovative Medicine and MedTech segments. The Innovative Medicine segment focuses on immunology, infectious diseases, neuroscience, oncology, cardiovascular and metabolism, and pulmonary hypertension. The MedTech segment includes a portfolio of products used in the interventional solutions, orthopaedics, surgery, and vision categories. The company was founded by Robert Wood Johnson I, James Wood Johnson, and Edward Mead Johnson Sr. in 1887 and is headquartered in New Brunswick, NJ.
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