Critical Review: Zura Bio (NASDAQ:ZURA) and Elutia (NASDAQ:ELUT)

Zura Bio (NASDAQ:ZURA) and Elutia (NASDAQ:ELUT) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Risk & Volatility

Zura Bio has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500. Comparatively, Elutia has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Profitability

This table compares Zura Bio and Elutia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zura Bio	N/A	-28.83%	-22.91%
Elutia	-261.08%	N/A	-159.96%

Insider and Institutional Ownership

61.1% of Zura Bio shares are owned by institutional investors. Comparatively, 74.0% of Elutia shares are owned by institutional investors. 15.8% of Zura Bio shares are owned by company insiders. Comparatively, 40.8% of Elutia shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Zura Bio and Elutia, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zura Bio	0	1	4	0	2.80
Elutia	0	0	2	0	3.00

Zura Bio currently has a consensus target price of $15.50, indicating a potential upside of 331.75%. Elutia has a consensus target price of $10.00, indicating a potential upside of 143.31%. Given Zura Bio’s higher probable upside, equities analysts clearly believe Zura Bio is more favorable than Elutia.

Valuation and Earnings

This table compares Zura Bio and Elutia’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zura Bio	N/A	N/A	-$69.24 million	N/A	N/A
Elutia	$24.75 million	5.66	-$37.66 million	($2.37)	-1.73

Elutia has higher revenue and earnings than Zura Bio.

Summary

Elutia beats Zura Bio on 7 of the 11 factors compared between the two stocks.

About Zura Bio

Zura Bio Limited, a clinical-stage biotechnology company, focuses on developing novel medicines for immune and inflammatory disorders. It develops Tibulizumab, an IgG-scFv bispecific dual-antagonist antibody engineered by the fusion of ixekizumab and tabalumab that neutralizes IL-17A and BAFF, which is in Phase 2 clinical trial development; ZB-168, a monoclonal antibody that binds and neutralizes the IL-7 receptor chain that impact on diseases driven by IL7 and thymic stromal lymphopoietin immune pathways; and Torudokimab, a monoclonal antibody that neutralizes IL33, which is in Phase 2 clinical trial development. The company is based in Henderson, Nevada.

About Elutia

Elutia Inc., a commercial-stage company, develops and commercializes drug-eluting biologics products for neurostimulation, wound care, and breast reconstruction in the United States. The company operates in three segments: Device Protection; Women's Health; and Cardiovascular. It offers CanGaroo Envelope, which is used to accommodate cardiac implantable electronic devices, such as pacemakers and internal defibrillators. The company also develops CanGarooRM, a combination of the CanGaroo envelope with antibiotics, to reduce the risk of infection after surgical implantation of an electronic device. In addition, it provides ProxiCor for cardiac tissue repair and pericardial closure; Tyke, an extracellular material that is used in the repair of cardiac structures for neonate and infant patients; and VasCure, a patch material to repair or reconstruct the peripheral vasculature. Further, the company offers SimpliDerm, which uses human acellular dermal matrices for tissue repair and reconstruction in various applications, such as sports medicine, hernia repair, trauma reconstruction, and breast reconstruction surgeries following mastectomy. It serves hospitals and healthcare facilities through its direct sales force, independent sales agents, and distributors. The company was formerly known as Aziyo Biologics, Inc. and changed its name to Elutia Inc. in September 2023. Elutia Inc. was incorporated in 2015 and is headquartered in Silver Spring, Maryland.