Karyopharm Therapeutics (NASDAQ:KPTI – Get Free Report) and Zai Lab (NASDAQ:ZLAB – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.
Profitability
This table compares Karyopharm Therapeutics and Zai Lab’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Karyopharm Therapeutics | -104.18% | N/A | -57.80% |
| Zai Lab | -92.44% | -37.96% | -29.42% |
Volatility and Risk
Karyopharm Therapeutics has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500. Comparatively, Zai Lab has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Karyopharm Therapeutics | $145.67 million | 0.67 | -$143.10 million | ($1.27) | -0.62 |
| Zai Lab | $266.72 million | 7.01 | -$334.62 million | ($3.49) | -5.38 |
Karyopharm Therapeutics has higher earnings, but lower revenue than Zai Lab. Zai Lab is trading at a lower price-to-earnings ratio than Karyopharm Therapeutics, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
66.4% of Karyopharm Therapeutics shares are owned by institutional investors. Comparatively, 41.7% of Zai Lab shares are owned by institutional investors. 4.3% of Karyopharm Therapeutics shares are owned by company insiders. Comparatively, 5.2% of Zai Lab shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings for Karyopharm Therapeutics and Zai Lab, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Karyopharm Therapeutics | 0 | 1 | 4 | 0 | 2.80 |
| Zai Lab | 0 | 0 | 5 | 0 | 3.00 |
Karyopharm Therapeutics presently has a consensus price target of $4.80, indicating a potential upside of 513.81%. Zai Lab has a consensus price target of $58.97, indicating a potential upside of 214.33%. Given Karyopharm Therapeutics’ higher possible upside, analysts clearly believe Karyopharm Therapeutics is more favorable than Zai Lab.
Summary
Zai Lab beats Karyopharm Therapeutics on 8 of the 14 factors compared between the two stocks.
About Karyopharm Therapeutics
Karyopharm Therapeutics Inc., a commercial-stage pharmaceutical company, discovers, develops, and commercializes drugs directed against nuclear export for the treatment of cancer and other diseases in the United States. The company discovers, develops, and commercializes novel and small molecule Selective Inhibitor of Nuclear Export (SINE) compounds that inhibit the nuclear export protein exportin 1 (XPO1). Its lead compound, include XPOVIO in combination with bortezomib and dexamethasone for the treatment of adult patients with multiple myeloma; in combination with dexamethasone for the treatment of adult patients with relapsed or refractory multiple myeloma; and for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL). It also developing Selinexor for treating hematological and solid tumor malignancies, including multiple myeloma, endometrial cancer, myelofibrosis, and DLBCL; and ELTANEXOR for treating Myelodysplastic Neoplasms, as well as verdinexor, KPT-9274, and IL-12 compounds. The company has license agreement with Menarini Group to develop and commercialize selinexor for human oncology indications; license agreement with Antengene Therapeutics Limited to develop and commercialize selinexor, eltanexor, and KPT-9274 for the treatment and/or prevention of human oncology indications, as well as verdinexor for the diagnosis, treatment, and/or prevention of human non-oncology indications; and distribution agreement for the commercialization of XPOVIO with FORUS Therapeutics Inc. Further, it has a collaboration with Bristol Myers Squibb company to evaluate novel cereblon E3 ligase modulator agent mezigdomide in combination with Selinexor in patients with relapsed/refractory multiple myeloma. Karyopharm Therapeutics Inc. was incorporated in 2008 and is headquartered in Newton, Massachusetts.
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.
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