Head-To-Head Survey: Zymeworks (NYSE:ZYME) versus Arcturus Therapeutics (NASDAQ:ARCT)

Arcturus Therapeutics (NASDAQ:ARCT) and Zymeworks (NYSE:ZYME) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations for Arcturus Therapeutics and Zymeworks, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcturus Therapeutics	0	0	6	1	3.14
Zymeworks	0	2	4	1	2.86

Arcturus Therapeutics currently has a consensus price target of $66.75, suggesting a potential upside of 303.81%. Zymeworks has a consensus price target of $19.17, suggesting a potential upside of 35.55%. Given Arcturus Therapeutics’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Arcturus Therapeutics is more favorable than Zymeworks.

Insider & Institutional Ownership

94.5% of Arcturus Therapeutics shares are owned by institutional investors. Comparatively, 92.9% of Zymeworks shares are owned by institutional investors. 15.3% of Arcturus Therapeutics shares are owned by company insiders. Comparatively, 1.9% of Zymeworks shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Arcturus Therapeutics and Zymeworks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arcturus Therapeutics	-36.39%	-22.39%	-14.81%
Zymeworks	-182.75%	-23.00%	-18.04%

Valuation and Earnings

This table compares Arcturus Therapeutics and Zymeworks”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arcturus Therapeutics	$142.47 million	3.14	-$29.73 million	($2.22)	-7.45
Zymeworks	$62.20 million	15.66	-$118.67 million	($1.50)	-9.43

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

Risk & Volatility

Arcturus Therapeutics has a beta of 2.62, meaning that its share price is 162% more volatile than the S&P 500. Comparatively, Zymeworks has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Summary

Arcturus Therapeutics beats Zymeworks on 12 of the 14 factors compared between the two stocks.

About Arcturus Therapeutics

Arcturus Therapeutics Holdings Inc., a late-stage clinical messenger RNA medicines and vaccine company, focuses on the development of infectious disease vaccines and other products within liver and respiratory rare diseases. Its technology platforms include LUNAR lipid-mediated delivery and STARR mRNA. The company is developing ARCT-810 (LUNAR-OTC), a mRNA-based therapeutic candidate, which is in Phase 2 clinical trial for treating ornithine transcarbamylase deficiency; and ARCT-154 (LUNAR-COV19), a mRNA vaccine candidate that is in Phase 3 arm of a Phase 1/2/3 study in Vietnam for the treatment of COVID-19, as well as ARCT-032 (LUNAR-CF), a mRNA therapeutic candidate for cystic fibrosis. Its product pipeline includes, ARCT-2301 for bivalent: ancestral/omicron which is in Phase 3; ARCT-2303 for monovalent that is in Phase 3; ARCT-2138 for quadrivalent which is in Phase 1; and LUNAR-FLU which is in pre-clinical trial. Arcturus Therapeutics Holdings Inc. was founded in 2013 and is headquartered in San Diego, California.

About Zymeworks

Zymeworks Inc., a clinical-stage biopharmaceutical company, discovers, develops, and commercializes biotherapeutics for the treatment of cancer. The company’s lead product candidates include zanidatamab, a human epidermal growth factor receptor 2 (HER2) that is in Phase 1, Phase 2, and Phase 3 clinical trials, including certain ongoing pivotal clinical trials; and zanidatamab zovodotin, a HER2 -targeted antibody-drug conjugate that is in Phase 2 clinical trial for the treatment of advanced or metastatic HER2-expressing tumors. It also develops a pipeline of preclinical product candidates and discovery-stage programs in oncology, including immuno-oncology agents and other therapeutic areas. Zymeworks Inc. has strategic partnerships and collaborations with BeiGene, Ltd.; Celgene Corporation; Celgene Alpine Investment Co. LLC; GlaxoSmithKline Intellectual Property Development Limited; Daiichi Sankyo Co., Ltd.; Janssen Biotech, Inc.; LEO Pharma A/S; Iconic Therapeutics, Inc.; Merck Sharp & Dohme Research GmbH; and Atreca, Inc. Zymeworks Inc. was incorporated in 2003 and is based in Middletown, Delaware.