Head-To-Head Survey: AVEO Pharmaceuticals (AVEO) & Zai Lab (ZLAB)

AVEO Pharmaceuticals (NASDAQ: AVEO) and Zai Lab (NASDAQ:ZLAB) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Institutional and Insider Ownership

54.2% of AVEO Pharmaceuticals shares are held by institutional investors. Comparatively, 18.9% of Zai Lab shares are held by institutional investors. 4.7% of AVEO Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for AVEO Pharmaceuticals and Zai Lab, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AVEO Pharmaceuticals 0 0 4 0 3.00
Zai Lab 0 0 3 0 3.00

AVEO Pharmaceuticals currently has a consensus target price of $4.17, suggesting a potential upside of 38.89%. Zai Lab has a consensus target price of $37.00, suggesting a potential upside of 57.51%. Given Zai Lab’s higher probable upside, analysts clearly believe Zai Lab is more favorable than AVEO Pharmaceuticals.

Valuation and Earnings

This table compares AVEO Pharmaceuticals and Zai Lab’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AVEO Pharmaceuticals $2.52 million 140.86 -$26.88 million ($0.71) -4.23
Zai Lab N/A N/A -$37.51 million N/A N/A

AVEO Pharmaceuticals has higher revenue and earnings than Zai Lab.

Profitability

This table compares AVEO Pharmaceuticals and Zai Lab’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AVEO Pharmaceuticals -972.31% N/A -80.17%
Zai Lab N/A N/A N/A

Summary

AVEO Pharmaceuticals beats Zai Lab on 5 of the 8 factors compared between the two stocks.

AVEO Pharmaceuticals Company Profile

AVEO Pharmaceuticals, Inc. is a biopharmaceutical company. The Company’s platform delivers insights into cancer and related disease. The Company’s product candidates include Tivozanib, Ficlatuzumab, AV-203 and AV-380. Tivozanib is a selective long half-life vascular endothelial growth factor tyrosine kinase inhibitor (VEGF TKI) that inhibits over three VEGF receptors. Tivozanib is designed to optimize VEGF blockade while minimizing off-target toxicities. Ficlatuzumab is a Hepatocyte Growth Factor (HGF) inhibitory antibody. AV-203 is an anti-ErbB3 monoclonal antibody with ErbB3 affinity. Its preclinical studies suggest that neuregulin1 (NRG1) levels predict AV-203 antitumor activity in preclinical models. AV-380 is a humanized Immunoglobulin G 1 (IgG1) inhibitory monoclonal antibody. AV-380 targets growth differentiating factor 15 (GDF15).

Zai Lab Company Profile

Zai Lab Ltd, incorporated on March 28, 2017, is a biopharmaceutical company. The Company is focused on discovering or licensing, developing and commercializing proprietary therapeutics that address areas of large unmet medical need in the China market, including in the fields of oncology, autoimmune and infectious diseases. The Company has a broad pipeline of proprietary drug candidates that range from discovery stage to late-stage clinical programs. These include three drug candidates with greater China rights and three drug candidates with global rights. The greater China rights drug candidates include Niraparib (ZL-2306), Omadacycline (ZL-2401) and ZL-2301. The global rights drug candidates include Fugan (ZL-3101), ZL-2302 and ZL-1101.

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