Zentalis Pharmaceuticals (NASDAQ:ZNTL – Get Free Report) and Sol-Gel Technologies (NASDAQ:SLGL – Get Free Report) are both small-cap healthcare companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.
Valuation and Earnings
This table compares Zentalis Pharmaceuticals and Sol-Gel Technologies”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zentalis Pharmaceuticals | N/A | N/A | -$137.06 million | ($1.95) | -1.58 |
| Sol-Gel Technologies | $19.39 million | 9.35 | -$6.13 million | ($5.64) | -11.44 |
Institutional & Insider Ownership
26.2% of Sol-Gel Technologies shares are owned by institutional investors. 3.8% of Zentalis Pharmaceuticals shares are owned by company insiders. Comparatively, 66.5% of Sol-Gel Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Zentalis Pharmaceuticals and Sol-Gel Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zentalis Pharmaceuticals | 1 | 4 | 5 | 0 | 2.40 |
| Sol-Gel Technologies | 1 | 1 | 3 | 1 | 2.67 |
Zentalis Pharmaceuticals presently has a consensus target price of $6.75, suggesting a potential upside of 119.16%. Sol-Gel Technologies has a consensus target price of $197.50, suggesting a potential upside of 206.01%. Given Sol-Gel Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Sol-Gel Technologies is more favorable than Zentalis Pharmaceuticals.
Volatility and Risk
Zentalis Pharmaceuticals has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500. Comparatively, Sol-Gel Technologies has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.
Profitability
This table compares Zentalis Pharmaceuticals and Sol-Gel Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zentalis Pharmaceuticals | N/A | -70.18% | -51.46% |
| Sol-Gel Technologies | -910.14% | -44.05% | -36.96% |
Summary
Sol-Gel Technologies beats Zentalis Pharmaceuticals on 9 of the 14 factors compared between the two stocks.
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.
About Sol-Gel Technologies
Sol-Gel Technologies Ltd., together with its subsidiary Sol-Gel Technologies Inc., develops topical dermatological drugs for patients with severe skin conditions in Israel. The company offers Twyneo, a once-daily, non-antibiotic topical cream for the treatment of acne vulgaris; and Epsolay, a once-daily topical cream for the treatment of papulopustular (subtype II) rosacea. It also develops SGT-610 that is in Phase 3 clinical trials for the treatment of Gorlin Syndrome; and SGT-210, which has completed Phase I clinical trial, to treat rare hyperkeratinization disorders, such as Darier, PC, PPK, Olmsted, etc. In addition, the company is also involved in the development of generic topical dermatological drug products. It has collaboration with Padagis Israel Pharmaceuticals Ltd; and license agreements with Galderma Holding SA and Searchlight Pharma Inc. Sol-Gel Technologies Ltd. was incorporated in 1997 and is headquartered in Ness Ziona, Israel.
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