Head to Head Comparison: Arcturus Therapeutics (NASDAQ:ARCT) vs. Zymeworks (NYSE:ZYME)

Zymeworks (NYSE:ZYME) and Arcturus Therapeutics (NASDAQ:ARCT) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.

Risk and Volatility

Zymeworks has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Arcturus Therapeutics has a beta of 2.62, indicating that its stock price is 162% more volatile than the S&P 500.

Profitability

This table compares Zymeworks and Arcturus Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zymeworks	-182.75%	-23.00%	-18.04%
Arcturus Therapeutics	-36.39%	-22.39%	-14.81%

Institutional & Insider Ownership

92.9% of Zymeworks shares are held by institutional investors. Comparatively, 94.5% of Arcturus Therapeutics shares are held by institutional investors. 1.9% of Zymeworks shares are held by company insiders. Comparatively, 15.3% of Arcturus Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Zymeworks and Arcturus Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zymeworks	0	2	4	1	2.86
Arcturus Therapeutics	0	0	6	1	3.14

Zymeworks currently has a consensus target price of $19.17, indicating a potential upside of 34.22%. Arcturus Therapeutics has a consensus target price of $66.75, indicating a potential upside of 304.30%. Given Arcturus Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Arcturus Therapeutics is more favorable than Zymeworks.

Earnings and Valuation

This table compares Zymeworks and Arcturus Therapeutics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zymeworks	$62.20 million	15.81	-$118.67 million	($1.50)	-9.52
Arcturus Therapeutics	$142.47 million	3.14	-$29.73 million	($2.22)	-7.44

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

Summary

Arcturus Therapeutics beats Zymeworks on 12 of the 14 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 human epidermal growth factor receptor 2 (HER2) that is in Phase 1, Phase 2, and Phase 3 clinical trials, including certain ongoing pivotal clinical trials; and zanidatamab zovodotin, a HER2 -targeted antibody-drug conjugate that is in Phase 2 clinical trial for the treatment of advanced or metastatic HER2-expressing tumors. It also develops a pipeline of preclinical product candidates and discovery-stage programs in oncology, including immuno-oncology agents and other therapeutic areas. Zymeworks Inc. has strategic partnerships and collaborations with BeiGene, Ltd.; Celgene Corporation; Celgene Alpine Investment Co. LLC; GlaxoSmithKline Intellectual Property Development Limited; Daiichi Sankyo Co., Ltd.; Janssen Biotech, Inc.; LEO Pharma A/S; Iconic Therapeutics, Inc.; Merck Sharp & Dohme Research GmbH; and Atreca, Inc. Zymeworks Inc. was incorporated in 2003 and is based in Middletown, Delaware.

About Arcturus Therapeutics

Arcturus Therapeutics Holdings Inc., a late-stage clinical messenger RNA medicines and vaccine company, focuses on the development of infectious disease vaccines and other products within liver and respiratory rare diseases. Its technology platforms include LUNAR lipid-mediated delivery and STARR mRNA. The company is developing ARCT-810 (LUNAR-OTC), a mRNA-based therapeutic candidate, which is in Phase 2 clinical trial for treating ornithine transcarbamylase deficiency; and ARCT-154 (LUNAR-COV19), a mRNA vaccine candidate that is in Phase 3 arm of a Phase 1/2/3 study in Vietnam for the treatment of COVID-19, as well as ARCT-032 (LUNAR-CF), a mRNA therapeutic candidate for cystic fibrosis. Its product pipeline includes, ARCT-2301 for bivalent: ancestral/omicron which is in Phase 3; ARCT-2303 for monovalent that is in Phase 3; ARCT-2138 for quadrivalent which is in Phase 1; and LUNAR-FLU which is in pre-clinical trial. Arcturus Therapeutics Holdings Inc. was founded in 2013 and is headquartered in San Diego, California.