Kezar Life Sciences (NASDAQ:KZR – Get Free Report) and Summit Therapeutics (NASDAQ:SMMT – Get Free Report) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.
Institutional and Insider Ownership
67.9% of Kezar Life Sciences shares are owned by institutional investors. Comparatively, 4.6% of Summit Therapeutics shares are owned by institutional investors. 9.3% of Kezar Life Sciences shares are owned by company insiders. Comparatively, 88.3% of Summit Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Kezar Life Sciences and Summit Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kezar Life Sciences | N/A | -54.95% | -46.11% |
| Summit Therapeutics | N/A | -85.42% | -52.66% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kezar Life Sciences | 0 | 3 | 0 | 0 | 2.00 |
| Summit Therapeutics | 0 | 1 | 3 | 0 | 2.75 |
Kezar Life Sciences presently has a consensus target price of $40.50, indicating a potential upside of 442.90%. Summit Therapeutics has a consensus target price of $34.75, indicating a potential upside of 89.79%. Given Kezar Life Sciences’ higher possible upside, equities analysts plainly believe Kezar Life Sciences is more favorable than Summit Therapeutics.
Risk and Volatility
Kezar Life Sciences has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500. Comparatively, Summit Therapeutics has a beta of -0.92, meaning that its stock price is 192% less volatile than the S&P 500.
Earnings and Valuation
This table compares Kezar Life Sciences and Summit Therapeutics”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kezar Life Sciences | $7.00 million | 7.78 | -$101.87 million | ($13.18) | -0.57 |
| Summit Therapeutics | $700,000.00 | 19,289.59 | -$614.93 million | ($0.28) | -65.39 |
Kezar Life Sciences has higher revenue and earnings than Summit Therapeutics. Summit Therapeutics is trading at a lower price-to-earnings ratio than Kezar Life Sciences, indicating that it is currently the more affordable of the two stocks.
Summary
Kezar Life Sciences beats Summit Therapeutics on 8 of the 13 factors compared between the two stocks.
About Kezar Life Sciences
Kezar Life Sciences, Inc., a clinical-stage biotechnology company, engages in the discovery and development of novel small molecule therapeutics to treat unmet needs in immune-mediated diseases and cancer in the United States. The company's lead product candidate is zetomipzomib (KZR-616), a selective immunoproteasome inhibitor that is in Phase 2b clinical trials for various indications, including lupus nephritis, dermatomyositis, and polymyositis; Phase 1b clinical trials in systemic lupus erythematosus; and completed Phase 2a clinical trials in lupus nephritis. Its preclinical products include KZR-261, a novel first-in-class protein secretion inhibitor for the treatment of tumors resistant to traditional chemotherapeutics. Kezar Life Sciences, Inc. was incorporated in 2015 and is headquartered in South San Francisco, California.
About Summit Therapeutics
Summit Therapeutics Inc., a biopharmaceutical company, focuses on discovery, development, and commercialization of patient, physician, caregiver, and societal friendly medicinal therapies in the United States, and the United Kingdom. The company’s lead development candidate is Ivonescimab, a bispecific antibody for immunotherapy through blockade of PD-1 with the anti-angiogenesis; and anti-infectives portfolio includes SMT-738, a novel class of precision antibiotics for the treatment of multidrug resistant infections, which primarily includes carbapenem-resistant Enterobacteriaceae infections. It has a collaboration and license agreement with Akeso, Inc. and its affiliates to develop and commercialize ivonescimab, as well as strategic collaboration with The University of Texas MD Anderson Cancer Center for the purpose of accelerating the development of ivonescimab. The company was founded in 2003 and is headquartered in Miami, Florida.
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