Zenas Biopharma (ZBIO) vs. Its Peers Critical Review

Zenas Biopharma (NASDAQ:ZBIO) is one of 422 public companies in the “Biotechnology” industry, but how does it weigh in compared to its peers? We will compare Zenas Biopharma to similar businesses based on the strength of its institutional ownership, profitability, earnings, analyst recommendations, risk, dividends and valuation.

Insider and Institutional Ownership

29.3% of shares of all “Biotechnology” companies are owned by institutional investors. 22.5% of shares of all “Biotechnology” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Zenas Biopharma and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Zenas Biopharma	$5.00 million	N/A	-2.23
Zenas Biopharma Competitors	$154.14 million	-$11.26 million	-53.98

Zenas Biopharma’s peers have higher revenue, but lower earnings than Zenas Biopharma. Zenas Biopharma is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Zenas Biopharma pays an annual dividend of $0.05 per share and has a dividend yield of 0.6%. Zenas Biopharma pays out -1.4% of its earnings in the form of a dividend. As a group, “Biotechnology” companies pay a dividend yield of 4.7% and pay out 116.1% of their earnings in the form of a dividend.

Profitability

This table compares Zenas Biopharma and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zenas Biopharma	N/A	N/A	N/A
Zenas Biopharma Competitors	-14,682.20%	39.10%	-32.41%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Zenas Biopharma and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zenas Biopharma	0	0	2	0	3.00
Zenas Biopharma Competitors	835	2274	4733	56	2.51

Zenas Biopharma currently has a consensus target price of $40.00, suggesting a potential upside of 404.41%. As a group, “Biotechnology” companies have a potential upside of 62.34%. Given Zenas Biopharma’s stronger consensus rating and higher probable upside, equities analysts plainly believe Zenas Biopharma is more favorable than its peers.

Summary

Zenas Biopharma beats its peers on 7 of the 13 factors compared.

About Zenas Biopharma

Zenas BioPharma, Inc. is a clinical-stage global biopharmaceutical company. The firm is mainly engaged 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.