Progenics Pharmaceuticals, Inc. (NASDAQ:PGNX) and Zosano Pharma Corporation (NASDAQ:ZSAN) are both Healthcare companies that recently hit new low. This price action has ruffled more than a few feathers in the investment community, but is one a better investment than the other? To answer this, we will compare the two companies across growth, profitability, risk, return, dividends, and valuation measures.
Progenics Pharmaceuticals, Inc. (NASDAQ:PGNX) operates in the Biotechnology segment of the Healthcare sector. The company has grown sales at a -3.90% annual rate over the past five years, putting it in the low growth category. PGNX has a net profit margin of -6.10% and is less profitable than the average company in the Biotechnology industry. In terms of efficiency, PGNX has an asset turnover ratio of 0.38. This figure represents the amount of revenue a company generates per dollar of assets. PGNX’s financial leverage ratio is 1.29, which indicates that the company’s asset base is primarily funded by equity capital. Company’s return on equity, which is really just the product of the company’s profit margin, asset turnover, and financial leverage ratios, is -4.10%, which is worse than the Biotechnology industry average ROE.
Progenics Pharmaceuticals, Inc. (PGNX) pays out an annual dividend per share. Stock’s free cash flow yield, which represents the amount of cash available to investors before dividends, expressed as a percentage of the stock price, is -2.92. All else equal, companies with higher FCF yields are viewed as cheaper. The average investment recommendation for PGNX, taken from a group of Wall Street Analysts, is 1.40, or a strong buy.
Over the past three months, Progenics Pharmaceuticals, Inc. insiders have been net buyers, dumping a net of 0 shares. This implies that insiders have been feeling relatively bearish about the outlook for PGNX. Insider activity and sentiment signals are important to monitor because they can shed light on how “risky” a stock is perceived to be at it’s current valuation. Knowing this, it makes sense to look at beta, a measure of market risk. PGNX has a beta of 3.52 and therefore an above average level of market volatility.
Zosano Pharma Corporation (NASDAQ:ZSAN) operates in the Biotechnology segment of the Healthcare sector. ZSAN’s has financial leverage of 0.58. Company is therefore mostly financed by equity capital. ZSAN’s return on equity of -172.80% is worse than the Biotechnology industry average.
The company trades at a free cash flow yield of -22.73. Compared to the average company in the 12.28 space. The average analyst recommendation for ZSAN is 2.00, or a buy.
Zosano Pharma Corporation insiders have sold a net of -26,666 shares during the past three months, which implies that the company’s top executives have been feeling bearish about the stock’s outlook. Finally, ZSAN’s beta indicates that the stock has an above average level of market risk.
Progenics Pharmaceuticals, Inc. (NASDAQ:PGNX) scores higher than Zosano Pharma Corporation (NASDAQ:ZSAN) on 5 of the 6 measures compared between the two companies. PGNX has the better fundamentals, scoring higher on efficiency and return metrics. PGNX has better insider activity and sentiment signals.