Head-To-Head Analysis: United Therapeutics (NASDAQ:UTHR) and Zentalis Pharmaceuticals (NASDAQ:ZNTL)

United Therapeutics (NASDAQ:UTHR) and Zentalis Pharmaceuticals (NASDAQ:ZNTL) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for United Therapeutics and Zentalis Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Therapeutics	1	2	9	0	2.67
Zentalis Pharmaceuticals	1	6	3	0	2.20

United Therapeutics presently has a consensus price target of $331.73, suggesting a potential upside of 1.24%. Zentalis Pharmaceuticals has a consensus price target of $11.33, suggesting a potential upside of 213.94%. Given Zentalis Pharmaceuticals’ higher probable upside, analysts clearly believe Zentalis Pharmaceuticals is more favorable than United Therapeutics.

Risk and Volatility

United Therapeutics has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Zentalis Pharmaceuticals has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500.

Profitability

This table compares United Therapeutics and Zentalis Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Therapeutics	40.87%	18.82%	15.61%
Zentalis Pharmaceuticals	N/A	-46.05%	-37.80%

Earnings and Valuation

This table compares United Therapeutics and Zentalis Pharmaceuticals’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Therapeutics	$2.33 billion	6.26	$984.80 million	$21.15	15.49
Zentalis Pharmaceuticals	$40.56 million	6.32	-$292.19 million	($3.33)	-1.08

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

Insider & Institutional Ownership

94.1% of United Therapeutics shares are owned by institutional investors. 12.5% of United Therapeutics shares are owned by insiders. Comparatively, 6.1% of Zentalis Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

United Therapeutics beats Zentalis Pharmaceuticals on 11 of the 14 factors compared between the two stocks.

About United Therapeutics

United Therapeutics Corporation, a biotechnology company, engages in the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases in the United States and internationally. The company offers Tyvaso DPI, an inhaled dry powder via pre-filled and single-use cartridges; Tyvaso, an inhaled solution via ultrasonic nebulizer; Remodulin (treprostinil) injection to treat patients with pulmonary arterial hypertension (PAH) to diminish symptoms associated with exercise; Orenitram, a tablet dosage form of treprostinil, to delay disease progression and improve exercise capacity in PAH patients; and Adcirca, an oral PDE-5 inhibitor to enhance the exercise ability in PAH patients. It also markets and sells Unituxin (dinutuximab) injection, a monoclonal antibody for treating high-risk neuroblastoma; and Remunity Pump, which contains a pump and separate controller for Remodulin. In addition, the company engages in developing RemoPro and Ralinepag for the treatment of PAH; Aurora-GT, a gene therapy product to rebuild the blood vessels in the lungs; and Nebulized Tyvaso, for the treatment of idiopathic pulmonary fibrosis, as well as xenografts, which are development-stage organ products. It has licensing and collaboration agreements with DEKA Research & Development Corp. to develop a semi-disposable system for the subcutaneous delivery of treprostinil; MannKind Corporation to develop and license treprostinil inhalation powder and the Dreamboat device; and Arena Pharmaceuticals, Inc. to develop Ralinepag. The company was incorporated in 1996 and is headquartered in Silver Spring, Maryland.

About Zentalis Pharmaceuticals

Zentalis Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing small molecule therapeutics for the treatment of various cancers. Its products candidatures include the ZN-c3, an inhibitor of WEE1, a protein tyrosine kinase for the treatment of inhibitor for advanced solid tumors and hematological malignancies; in Phase 2 clinical trial as a monotherapy for the treatment of uterine serous carcinoma indications; Phase 2 clinical trial in Cyclin E1 driven high-grade serous ovarian cancer, fallopian tube, or primary peritoneal cancer; Phase 1/2 clinical trial in combination with PARPi for platinum-resistant ovarian cancer; Phase 1b clinical trial in combination with chemotherapy in platinum-resistant ovarian, and peritoneal or fallopian tube cancer; Phase 1/2 clinical trial in combination with chemotherapy in relapsed or refractory osteosarcoma; Phase 1/2 clinical trial with encorafenib and cetuximab for mutant metastatic colorectal cancer; and Phase 1/2 clinical trial in combination with chemotherapy in pancreatic cancer. The company's products pipeline also includes ZN-d5, an oral small molecule inhibitor of B-cell lymphoma 2, for hematological malignancies and related disorders; and BCL-xL heterobifunctional degrader, a member of the anti-apoptotic BCL-2 proteins, for solid tumors and hematological malignancies. Zentalis Pharmaceuticals, Inc. has licensing agreements and strategic collaborations with Recurium IP Holdings, LLC; Pfizer, Inc.; Zentera Therapeutics; Dana-Farber; and GlaxoSmithKline plc. The company was incorporated in 2014 and is headquartered in New York, New York.