Reviewing United Therapeutics (NASDAQ:UTHR) and Zenas BioPharma (NASDAQ:ZBIO)

United Therapeutics (NASDAQ:UTHR) and Zenas BioPharma (NASDAQ:ZBIO) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Valuation & Earnings

This table compares United Therapeutics and Zenas BioPharma”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Therapeutics	$3.18 billion	6.57	$1.33 billion	$27.95	17.45
Zenas BioPharma	$10.00 million	214.31	-$377.74 million	($8.99)	-3.66

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for United Therapeutics and Zenas BioPharma, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Therapeutics	0	2	11	0	2.85
Zenas BioPharma	1	2	6	0	2.56

United Therapeutics currently has a consensus price target of $646.00, suggesting a potential upside of 32.48%. Zenas BioPharma has a consensus price target of $45.71, suggesting a potential upside of 39.03%. Given Zenas BioPharma’s higher probable upside, analysts plainly believe Zenas BioPharma is more favorable than United Therapeutics.

Profitability

This table compares United Therapeutics and Zenas BioPharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Therapeutics	41.56%	20.18%	17.98%
Zenas BioPharma	N/A	-122.45%	-58.04%

Insider and Institutional Ownership

94.1% of United Therapeutics shares are owned by institutional investors. 8.6% of United Therapeutics shares are owned by company insiders. Comparatively, 22.0% of Zenas BioPharma 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 & Risk

United Therapeutics has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Zenas BioPharma has a beta of -1.04, meaning that its share price is 204% less volatile than the S&P 500.

Summary

United Therapeutics beats Zenas BioPharma 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 Zenas BioPharma

Zenas BioPharma, Inc. is a clinical-stage global biopharmaceutical company, which engages in the development and commercialization of transformative immunology-based therapies for patients. The company was founded by Lonnie O. Moulder Jr on November 12, 2019 and is headquartered in Waltham, MA.