Kezar Life Sciences (NASDAQ:KZR – Get Free Report) and Neurogene (NASDAQ:NGNE – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
67.9% of Kezar Life Sciences shares are held by institutional investors. Comparatively, 52.4% of Neurogene shares are held by institutional investors. 9.3% of Kezar Life Sciences shares are held by company insiders. Comparatively, 9.9% of Neurogene shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and price targets for Kezar Life Sciences and Neurogene, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kezar Life Sciences | 0 | 2 | 1 | 0 | 2.33 |
| Neurogene | 0 | 0 | 8 | 1 | 3.11 |
Earnings and Valuation
This table compares Kezar Life Sciences and Neurogene’s 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 | 6.36 | -$101.87 million | ($1.40) | -0.44 |
| Neurogene | N/A | N/A | -$36.32 million | N/A | N/A |
Neurogene has lower revenue, but higher earnings than Kezar Life Sciences.
Risk & Volatility
Kezar Life Sciences has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Neurogene has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.
Profitability
This table compares Kezar Life Sciences and Neurogene’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kezar Life Sciences | N/A | -47.28% | -40.79% |
| Neurogene | N/A | -32.04% | -27.25% |
Summary
Neurogene beats Kezar Life Sciences on 8 of the 11 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 Neurogene
Neurogene Inc., a biotechnology company, develops genetic medicines for rare neurological diseases. The company's product candidates include NGN-401 which is packaged in an adeno-associated virus 9 that is in Phase 1/2 clinical trial for the treatment of Rett syndrome; and NGN-101, a conventional gene therapy candidate that is in Phase 1/2 clinical trial to treat CLN5 Batten disease. It has a license agreement with The University of North Carolina, the University of Edinburgh, Virovek, Inc., and Sigma-Aldrich Co. LLC. The company is headquartered in New York, New York.
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