Atara Biotherapeutics (NASDAQ: ATRA) and Zymeworks (NYSE:ZYME) are both small-cap healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Profitability

This table compares Atara Biotherapeutics and Zymeworks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atara Biotherapeutics N/A -44.82% -41.82%
Zymeworks -1,387.89% -117.85% -54.48%

Valuation and Earnings

This table compares Atara Biotherapeutics and Zymeworks’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atara Biotherapeutics N/A N/A -$79.04 million ($3.47) -12.98
Zymeworks $11.00 million 25.29 -$33.80 million N/A N/A

Zymeworks has higher revenue and earnings than Atara Biotherapeutics.

Institutional and Insider Ownership

69.6% of Atara Biotherapeutics shares are held by institutional investors. Comparatively, 7.2% of Zymeworks shares are held by institutional investors. 16.2% of Atara Biotherapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Atara Biotherapeutics and Zymeworks, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atara Biotherapeutics 0 2 4 0 2.67
Zymeworks 2 0 4 0 2.33

Atara Biotherapeutics currently has a consensus price target of $34.50, suggesting a potential downside of 23.42%. Zymeworks has a consensus price target of $16.00, suggesting a potential upside of 46.00%. Given Zymeworks’ higher probable upside, analysts plainly believe Zymeworks is more favorable than Atara Biotherapeutics.

Summary

Atara Biotherapeutics beats Zymeworks on 6 of the 9 factors compared between the two stocks.

Atara Biotherapeutics Company Profile

Atara Biotherapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on developing therapies for patients with severe and life-threatening diseases. The Company operates through the business of developing and commercializing therapeutics segment. The Company is focused on developing allogeneic or third-party derived antigen-specific T-cells. T-cells are a type of white blood cell. The Company’s product candidate, ATA129, is a third-party derived Epstein-Barr virus CTL for the treatment of Epstein-Barr virus (EBV). ATA188 is in development for the treatment of multiple sclerosis. ATA520, which is a third-party donor derived WT1-CTL, targets cancers expressing the antigen Wilms Tumor 1 (WT1). ATA520 is in Phase I clinical trials. The Company’s T-cell product candidate, ATA230, which is a third-party derived cytomegalovirus-CTL (CMV-CTL), is in Phase II clinical trials for refractory CMV.

Zymeworks Company Profile

Zymeworks Inc is a Canada-based clinical-stage biopharmaceutical company. The Company focuses on the discovery, development and commercialization of multifunctional biotherapeutics. The Company’s ZymeCAD platform is for protein modeling and structure-guided protein engineering. The Company’s platforms include Azymetric Platform, AlbuCORE Platform, EFECT Platform and Zymelink Conjugation Platform + Cytotoxins. The Company’s lead product candidate, ZW25, is a bispecific antibody, which is being evaluated in an adaptive Phase I clinical trial. Its ZW33 is a bi-specific antibody that delivers a cytotoxic payload to cancers cells by binding to different epitopes (bi-paratopic targeting) of the overexpressed HER2 protein. It focuses on developing a pipeline of preclinical product candidates and discovery-stage programs in immuno-oncology and other therapeutic areas. It analyzes protein characteristics to develop the scope of protein engineering to tackle biological systems.

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