Head to Head Comparison: Prestige Consumer Healthcare (NYSE:PBH) & Zafgen (NYSE:ZFGN)

Prestige Consumer Healthcare (NYSE:PBH) and Zafgen (NASDAQ:ZFGN) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Volatility & Risk

Prestige Consumer Healthcare has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Zafgen has a beta of -0.1, meaning that its stock price is 110% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Prestige Consumer Healthcare and Zafgen, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Prestige Consumer Healthcare 0 5 1 0 2.17
Zafgen 0 3 4 0 2.57

Prestige Consumer Healthcare currently has a consensus target price of $62.23, suggesting a potential upside of 103.38%. Zafgen has a consensus target price of $8.10, suggesting a potential upside of 478.86%. Given Zafgen’s stronger consensus rating and higher probable upside, analysts clearly believe Zafgen is more favorable than Prestige Consumer Healthcare.

Insider and Institutional Ownership

84.3% of Zafgen shares are held by institutional investors. 1.1% of Prestige Consumer Healthcare shares are held by company insiders. Comparatively, 14.2% of Zafgen shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Prestige Consumer Healthcare and Zafgen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Prestige Consumer Healthcare -3.67% 12.45% 4.00%
Zafgen N/A -70.60% -52.76%

Valuation & Earnings

This table compares Prestige Consumer Healthcare and Zafgen’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Prestige Consumer Healthcare $975.78 million 1.62 -$35.80 million $2.78 11.01
Zafgen N/A N/A -$61.37 million ($1.90) -0.74

Prestige Consumer Healthcare has higher revenue and earnings than Zafgen. Zafgen is trading at a lower price-to-earnings ratio than Prestige Consumer Healthcare, indicating that it is currently the more affordable of the two stocks.

Summary

Prestige Consumer Healthcare beats Zafgen on 7 of the 13 factors compared between the two stocks.

Prestige Consumer Healthcare Company Profile

Prestige Consumer Healthcare Inc., together with its subsidiaries, develops, manufactures, markets, distributes, and sells over-the-counter (OTC) healthcare and household cleaning products in North America, Australia, and internationally. It operates in three segments: North American OTC Healthcare, International OTC Healthcare, and Household Cleaning. The company's OTC healthcare products include BC/Goody's analgesic powders, Beano for gas prevention, Boudreaux's Butt Paste baby ointments, Chloraseptic sore throat liquids/lozenges, Clear Eyes for eye allergy/redness relief, Compound W for wart removal, Debrox for ear wax removal, DenTek PEG oral care, Dramamine for motion sickness relief, and Efferdent denture cleanser tablets. Its OTC healthcare products portfolio also comprises Fess nasal saline spray, Fleet adult enemas/suppositories, Gaviscon upset stomach remedies, Hydralyte for oral rehydration, Luden's cough drops, Monistat vaginal anti-fungal, Nix lice/parasite treatments, Pedia-Lax pediatric laxatives, Summer's Eve for feminine hygiene, Little Remedies pediatric OTC products, and The Doctor's NightGuard dental protectors. In addition, the company offers household cleaning products, such as abrasive tub and tile cleaners under the Comet name, as well as Chore Boy, and Spic and Span names. It serves mass merchandisers; and drug, food, dollar, convenience, and club stores. The company was formerly known as Prestige Brands Holdings, Inc. and changed its name to Prestige Consumer Healthcare Inc. in August 2018. Prestige Consumer Healthcare Inc. was founded in 1996 and is headquartered in Tarrytown, New York.

Zafgen Company Profile

Zafgen, Inc., a clinical-stage biopharmaceutical company, develops therapies for patients suffering from metabolic diseases comprising type 2 diabetes, Prader-Willi syndrome (PWS), and other metabolically related disorders. The company's lead product candidate is ZGN-1061, a fumagillin-class methionine aminopeptidase 2 (MetAP2) inhibitor administered by subcutaneous injection, which is in Phase 2 clinical trial and profiled for its utility in the treatment of type 2 diabetes and other related metabolic disorders. It also develops ZGN-1258, a MetAP2 inhibitor for treatment of PWS. Zafgen, Inc. was founded in 2005 and is headquartered in Boston, Massachusetts.

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