Comparing Zomedica (OTC:ZOMDF) & Zymeworks (NASDAQ:ZYME)

Zymeworks (NASDAQ:ZYME) and Zomedica (OTC:ZOMDF) are both small-cap manufacturing companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings for Zymeworks and Zomedica, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zymeworks	1	1	9	2	2.92
Zomedica	0	0	0	0	0.00

Zymeworks presently has a consensus target price of $32.82, indicating a potential upside of 45.21%. Given Zymeworks’ stronger consensus rating and higher possible upside, analysts clearly believe Zymeworks is more favorable than Zomedica.

Insider & Institutional Ownership

92.9% of Zymeworks shares are owned by institutional investors. Comparatively, 8.9% of Zomedica shares are owned by institutional investors. 33.5% of Zymeworks shares are owned by company insiders. Comparatively, 5.6% of Zomedica shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Zymeworks has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Zomedica has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500.

Profitability

This table compares Zymeworks and Zomedica’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zymeworks	-47.16%	-19.25%	-14.97%
Zomedica	N/A	N/A	N/A

Earnings and Valuation

This table compares Zymeworks and Zomedica”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zymeworks	$76.30 million	22.17	-$122.69 million	($0.84)	-26.90
Zomedica	N/A	N/A	N/A	($0.10)	-1.35

Zomedica has lower revenue, but higher earnings than Zymeworks. Zymeworks is trading at a lower price-to-earnings ratio than Zomedica, indicating that it is currently the more affordable of the two stocks.

Summary

Zymeworks beats Zomedica on 7 of the 13 factors compared between the two stocks.

About Zymeworks

Zymeworks Inc., a clinical-stage biopharmaceutical company, discovers, develops, and commercializes biotherapeutics for the treatment of cancer. The company’s lead product candidates include zanidatamab, a novel bispecific antibody that is in Phase 1 and Phase 2 clinical trials for the treatment of biliary tract, gastroesophageal adenocarcinomas, and breast cancer; and ZW49, a biparatopic anti- human epidermal growth factor receptor 2 (HER2) antibody-drug conjugate that is in Phase 1 clinical trial for the treatment of advanced or metastatic HER2-expressing tumors. The company has strategic partnerships with Merck Sharp & Dohme Research Ltd.; Eli Lilly and Company; Bristol-Myers Squibb company; GlaxoSmithKline Intellectual Property Development Ltd.; Daiichi Sankyo Co., Ltd.; Janssen Biotech, Inc.; and BeiGene, Ltd. It also has licensing and research collaboration with LEO Pharma A/S to discover and develop bispecific antibodies; and Iconic Therapeutics, Inc. Zymeworks Inc. was founded in 2003 and is headquartered in Vancouver, Canada.

About Zomedica

Zomedica Corp., a veterinary health company, focuses on the unmet needs of clinical veterinarians by developing products for companion animals. The company engages in the development and commercialization of TRUFORMA platform, which offers point-of-care diagnostic products for disease states in dogs and cats; and PulseVet, provides for treatment of various musculoskeletal issues, such as broken bones, tendonitis, and torn ligaments in horses and small animals. It has collaboration agreements with Celsee, Inc. for the development and commercialization of liquid biopsy assays and related consumables for the detection of cancer in companion animals; and Seraph Biosciences, Inc. for development and markets a novel pathogen detection system. The company was formerly known as Zomedica Pharmaceuticals Corp. and changed its name to Zomedica Corp. in October 2020. Zomedica Corp. was founded in 2015 and is headquartered in Ann Arbor, Michigan.