Head-To-Head Contrast: Zenas BioPharma (NASDAQ:ZBIO) and MacroGenics (NASDAQ:MGNX)

MacroGenics (NASDAQ:MGNX) and Zenas BioPharma (NASDAQ:ZBIO) are both small-cap healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Risk & Volatility

MacroGenics has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Zenas BioPharma has a beta of -0.9, suggesting that its stock price is 190% less volatile than the S&P 500.

Institutional & Insider Ownership

96.9% of MacroGenics shares are held by institutional investors. 13.6% of MacroGenics shares are held by insiders. Comparatively, 22.0% of Zenas BioPharma shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares MacroGenics and Zenas BioPharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MacroGenics	-8.70%	-109.26%	-18.70%
Zenas BioPharma	N/A	-122.45%	-58.04%

Analyst Ratings

This is a breakdown of current ratings for MacroGenics and Zenas BioPharma, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MacroGenics	1	3	2	0	2.17
Zenas BioPharma	1	2	6	0	2.56

MacroGenics currently has a consensus price target of $6.33, suggesting a potential upside of 85.19%. Zenas BioPharma has a consensus price target of $46.71, suggesting a potential upside of 85.67%. Given Zenas BioPharma’s stronger consensus rating and higher possible upside, analysts clearly believe Zenas BioPharma is more favorable than MacroGenics.

Earnings & Valuation

This table compares MacroGenics and Zenas BioPharma”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MacroGenics	$149.50 million	1.46	-$74.62 million	($0.22)	-15.55
Zenas BioPharma	$10.00 million	163.99	-$377.74 million	($8.99)	-2.80

MacroGenics has higher revenue and earnings than Zenas BioPharma. MacroGenics is trading at a lower price-to-earnings ratio than Zenas BioPharma, indicating that it is currently the more affordable of the two stocks.

Summary

MacroGenics beats Zenas BioPharma on 7 of the 13 factors compared between the two stocks.

About MacroGenics

MacroGenics, Inc., a biopharmaceutical company, develops, manufactures, and commercializes antibody-based therapeutics to treat cancer in the United States. Its approved product is MARGENZA (margetuximab-cmkb), a human epidermal growth factor receptor 2 (HER2) receptor antagonist indicated, in combination with chemotherapy, for the treatment of adult patients with metastatic HER2-positive breast cancer who have received two or more prior anti-HER2 regimens. The company's pipeline of immuno-oncology product candidates includes MGC018, an antibody drug conjugate (ADC), which targets solid tumors expressing B7-H3; Enoblituzumab, a monoclonal antibody that targets B7-H3; and MGD024, an investigational bispecific CD123 × CD3 DART molecule to minimize cytokine-release syndrome for patients with hematologic malignancies. In addition, it develops Lorigerlimab, a monoclonal antibody that targets the immune checkpoints PD-1 and cytotoxic T-lymphocyte-associated protein 4; Tebotelimab, an investigational tetravalent DART molecule for PD-1 and lymphocyte-activation gene 3; Retifanlimab, a humanized monoclonal antibody targeting programmed death receptor-1; and IMGC936, an ADC that targets ADAM9, a cell surface protein over-expressed in various solid tumor types. Further, the company develops MGD014 and MGD020, a DART molecule to target the envelope protein of human immunodeficiency virus infected cells and CD3 on T cells; Teplizumab for the treatment of type 1 diabetes; and PRV-3279, a CD32B × CD79B DART molecule for the treatment of autoimmune indications. It has collaborations with Incyte Corporation; Zai Lab Limited; I-Mab Biopharma; and Janssen Biotech, Inc. The company was incorporated in 2000 and is headquartered in Rockville, 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.