Zai Lab (NASDAQ:ZLAB) and Janux Therapeutics (NASDAQ:JANX) Financial Review

Janux Therapeutics (NASDAQ:JANX) and Zai Lab (NASDAQ:ZLAB) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Institutional & Insider Ownership

75.4% of Janux Therapeutics shares are held by institutional investors. Comparatively, 41.6% of Zai Lab shares are held by institutional investors. 7.9% of Janux Therapeutics shares are held by insiders. Comparatively, 4.9% of Zai Lab shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Janux Therapeutics and Zai Lab”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Janux Therapeutics	$24.00 million	46.85	-$113.62 million	($1.64)	-11.21
Zai Lab	$460.16 million	6.18	-$175.54 million	($1.71)	-14.61

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Janux Therapeutics and Zai Lab, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Janux Therapeutics	2	2	10	1	2.67
Zai Lab	1	1	4	1	2.71

Janux Therapeutics presently has a consensus target price of $36.46, suggesting a potential upside of 98.27%. Zai Lab has a consensus target price of $37.25, suggesting a potential upside of 49.06%. Given Janux Therapeutics’ higher possible upside, analysts clearly believe Janux Therapeutics is more favorable than Zai Lab.

Risk and Volatility

Janux Therapeutics has a beta of 2.4, meaning that its share price is 140% more volatile than the S&P 500. Comparatively, Zai Lab has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Janux Therapeutics	N/A	-11.89%	-11.13%
Zai Lab	-41.86%	-27.43%	-16.72%

Summary

Janux Therapeutics beats Zai Lab on 12 of the 14 factors compared between the two stocks.

About Janux Therapeutics

Janux Therapeutics, Inc., a clinical stage biopharmaceutical company, develops immunotherapies based on Tumor Activated T Cell Engagers (TRACTr) and Tumor Activated Immunomodulators (TRACIr) platforms technology to treat patients suffering from cancer. The company's clinical candidates comprise JANX007, a prostate-specific membrane antigen or PSMA-TRACTr, which is in Phase 1 clinical trial in adults for the treatment of metastatic castration-resistant prostate cancer (mCRPC) and the vasculature of other tumors; and JANX008, an epidermal growth factor receptor or EGFR-TRACTr that is in Phase 1 clinical trial for the treatment of multiple solid cancers, including colorectal cancer, squamous cell carcinoma of the head and neck, non-small cell lung cancer, and renal cell carcinoma. Its development pipeline also consists of discovery stage products. The company has strategic research collaboration agreement with Merck Sharp & Dohme Corp. to develop TRACTr product candidates. Janux Therapeutics, Inc. was incorporated in 2017 and is headquartered in San Diego, California.

About Zai Lab

Zai Lab Limited develops and commercializes therapies to treat oncology, autoimmune disorders, infectious diseases, and neuroscience. Its commercial products include Zejula, an orally administered poly polymerase 1/2 inhibitor; Optune, a cancer therapy that uses electric fields tuned to specific frequencies to kill tumor cells; NUZYRA for acute bacterial skin and skin structure infections, and community acquired bacterial pneumonia; Qinlock to treat gastrointestinal stromal tumors, and VYVGART, a human IgG1 antibody fragment for myesthenia gravis. The company also develops Tumor Treating Fields, a portable device for delivery of electric fields; Repotrectinib, a tyrosine kinase inhibitor (TKI) to target ROS1 and TRK A/B/C in TKI-naïve- or -pretreated cancer patients; Tisotumab vedotin, an antibody drug conjugate; Adagrasib for treating KRAS-G12C-mutated NSCLC, colorectal cancer, and pancreatic cancer; and Bemarituzumab to treat gastric and gastroesophageal junction cancer patients. In addition, it develops Sulbactam/durlobactam, a combination of a beta-lactam antibiotic and a beta-lactamase inhibitor for the treatment of serious infections caused by Acinetobacter; KarXT for the treatment of psychiatric and neurological conditions. It has license and collaboration agreement with Tesaro, Inc. to develop, manufacture, and commercialize niraparib; NovoCure to develop and commercialize Tumor Treating Fields; Deciphera to develop and commercialize ripretinib; Paratek Bermuda Ltd. to develop, manufacture, and commercialize omadacycline; argenx, to develop and commercialize efgartigimod; BMS to develop and commercialize tisotumab vedotin and repotrectinib; Mirati to research, develop, manufacture, and commercialize adagrasib; Amgen to develop and commercialize bemarituzumab; and Innoviva to develop and commercialize Sulbactam-Durlobactam; Karuna to develop and commercialize KarXT. The company was incorporated in 2013 and is headquartered in Shanghai, China.