Foghorn Therapeutics (NASDAQ:FHTX – Get Rating) and Zentalis Pharmaceuticals (NASDAQ:ZNTL – Get Rating) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.
Risk and Volatility:
Foghorn Therapeutics has a beta of 3.09, indicating that its stock price is 209% more volatile than the S&P 500. Comparatively, Zentalis Pharmaceuticals has a beta of 2.74, indicating that its stock price is 174% more volatile than the S&P 500.
Profitability:
This table compares Foghorn Therapeutics and Zentalis Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins: | Return on Equity: | Return on Assets: | |
| Foghorn Therapeutics | -2,124.94% | -118.78% | -30.01% |
| Zentalis Pharmaceuticals | N/A | -50.81% | -42.53% |
Insider & Institutional Ownership
66.9% of Foghorn Therapeutics shares are held by institutional investors. Comparatively, 95.0% of Zentalis Pharmaceuticals shares are held by institutional investors. 16.1% of Foghorn Therapeutics shares are held by insiders. Comparatively, 21.0% of Zentalis Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings:
This is a summary of recent recommendations for Foghorn Therapeutics and Zentalis Pharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings: | Hold Ratings: | Buy Ratings: | Strong Buy Ratings: | Rating Score: | |
| Foghorn Therapeutics | 0: | 0: | 4: | 0: | 3:00 |
| Zentalis Pharmaceuticals | 0: | 0: | 6:00 | 0: | 3:00 |
Foghorn Therapeutics currently has a consensus price target of $24.00, indicating a potential upside of 71.67%. Zentalis Pharmaceuticals has a consensus price target of $74.43, indicating a potential upside of 156.39%. Given Zentalis Pharmaceuticals’ higher probable upside, analysts clearly believe Zentalis Pharmaceuticals is more favorable than Foghorn Therapeutics.
Valuation and Earnings:
This table compares Foghorn Therapeutics and Zentalis Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue: | Price/Sales Ratio: | Net Income: | Earnings Per Share: | Price/Earnings Ratio: | |
| Foghorn Therapeutics | $1.32 million | 439.18 | -$101.32 million | ($2.76) | -5.07 |
| Zentalis Pharmaceuticals | N/A | N/A | -$158.73 million | ($3.85) | -7.54: |
Foghorn Therapeutics has higher revenue and earnings than Zentalis Pharmaceuticals. Zentalis Pharmaceuticals is trading at a lower price-to-earnings ratio than Foghorn Therapeutics, indicating that it is currently the more affordable of the two stocks.
Foghorn Therapeutics Company Profile (Get Rating)
Foghorn Therapeutics Inc., a clinical-stage biopharmaceutical company, discovers and develops medicines targeting genetically determined dependencies within the chromatin regulatory system. The company uses its proprietary Gene Traffic Control platform to identify, validate, and potentially drug targets within the system. It is developing FHD-286, a small molecule inhibitor of the enzymatic activity of BRG1 and BRM for the treatment of metastatic uveal melanoma and relapsed and/or refractory acute myeloid leukemia and myelodysplastic syndrome; and FHD-609, a small molecule protein degrader for BRD9 to treat patients with synovial sarcoma. The company is also developing an enzymatic inhibitor and a protein degrader as selective modulators of BRM; and ARID1B selective modulators for the treatment of ovarian, endometrial, colorectal, bladder, and gastric cancers. It has a research collaboration and license agreement with Merck Sharp & Dohme Corp. to discover and develop novel oncology therapeutics against a transcription factor target; and with Loxo Oncology to create novel oncology medicines. Foghorn Therapeutics Inc. was incorporated in 2015 and is headquartered in Cambridge, Massachusetts.
Zentalis Pharmaceuticals Company Profile: (Get Rating)
Zentalis Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing small molecule therapeutics for the treatment of various cancers. Its lead product candidate includes the ZN-c3, an inhibitor of WEE1, a protein tyrosine kinase, which is in Phase 2 clinical trial for the treatment of advanced solid tumors; Phase 1/2 clinical trial for the treatment of advanced solid tumors as a monotherapy and in an ongoing Phase 1b clinical trial in combination with chemotherapy in patients with platinum resistant ovarian cancer; and Phase 2 monotherapy trial for a tumor agnostic, predictive biomarker. The company’s other lead product candidate includes ZN-c5, an oral selective estrogen receptor degrader that is in a Phase 1/2 clinical trial for the treatment of advanced estrogen receptor-positive, human epidermal growth factor receptor 2-negative, or advanced or metastatic breast cancer. In addition, it is involved in developing ZN-d5, a selective inhibitor of B-cell lymphoma 2 that is in a Phase 1 clinical trial for the treatment of non-Hodgkin’s lymphoma and acute myelogenous leukemia; and ZN-e4, an irreversible inhibitor of mutant epidermal growth factor receptor, which is in Phase 1/2 clinical trial for the treatment of advanced non-small cell lung cancer. Further, the company is developing BCL-xL heterobifunctional degraders based on E3 ligases not expressed in platelets, allowing for the avoidance of dose-limiting thrombocytopenia associated with BCL-xL inhibitors. Zentalis Pharmaceuticals, Inc. has licensing agreements and strategic collaborations with Recurium IP Holdings, LLC; Mayo Foundation for Medical Education and Research; SciClone Pharmaceuticals International (Cayman) Development Ltd.; Pfizer, Inc.; Eli Lilly and Company; GlaxoSmithKline, and Zentera Therapeutics (Cayman), Ltd. The company was incorporated in 2014 and is based in New York, New York.
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