Zai Lab (NASDAQ:ZLAB) versus Amneal Pharmaceuticals (NASDAQ:AMRX) Head to Head Comparison

Amneal Pharmaceuticals (NASDAQ:AMRX) and Zai Lab (NASDAQ:ZLAB) are both mid-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amneal Pharmaceuticals	-6.72%	1,235.03%	4.64%
Zai Lab	-92.44%	-37.96%	-29.42%

Risk and Volatility

Amneal Pharmaceuticals has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Zai Lab has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Amneal Pharmaceuticals and Zai Lab, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amneal Pharmaceuticals	0	1	4	0	2.80
Zai Lab	0	0	4	0	3.00

Amneal Pharmaceuticals currently has a consensus target price of $9.40, indicating a potential upside of 10.98%. Zai Lab has a consensus target price of $52.50, indicating a potential upside of 73.73%. Given Zai Lab’s stronger consensus rating and higher possible upside, analysts plainly believe Zai Lab is more favorable than Amneal Pharmaceuticals.

Earnings & Valuation

This table compares Amneal Pharmaceuticals and Zai Lab”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amneal Pharmaceuticals	$2.60 billion	1.01	-$83.99 million	($0.56)	-15.13
Zai Lab	$322.71 million	9.33	-$334.62 million	($3.49)	-8.66

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

Institutional & Insider Ownership

31.8% of Amneal Pharmaceuticals shares are held by institutional investors. Comparatively, 41.7% of Zai Lab shares are held by institutional investors. 26.6% of Amneal Pharmaceuticals shares are held by company insiders. Comparatively, 5.2% of Zai Lab 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.

Summary

Amneal Pharmaceuticals beats Zai Lab on 8 of the 13 factors compared between the two stocks.

About Amneal Pharmaceuticals

Amneal Pharmaceuticals, Inc., together with its subsidiaries, develops, manufactures, markets, and distributes generics, injectables, biosimilars, and specialty branded pharmaceutical products worldwide. The company operates through three segments: Generics, Specialty, and AvKARE. The Generics segment offers immediate and extended release oral solid, powder, liquid, sterile injectable, nasal spray, inhalation and respiratory, biosimilar, ophthalmic, film, transdermal patch, and topical products. The Specialty segment develops, promotes, sells, and distributes pharmaceutical products with focus on central nervous system disorders, including Parkinson's disease, and endocrine disorders. This segment also provides Rytary, an oral capsule formulation of carbidopa-levodopa to treat Parkinson's disease, post-encephalitic parkinsonism, and parkinsonism; Unithroid for the treatment of hypothyroidism; and IPX203, a pipeline product for Parkinson's disease. The AvKARE segment offers pharmaceuticals, medical and surgical products, and services primarily to governmental agencies, the Department of Defense, and the Department of Veterans Affairs. This segment also distributes bottle and unit dose pharmaceuticals under the AvKARE and AvPAK names; and packages and distributes pharmaceuticals and vitamins to its retail and institutional customers. It sells its products through wholesalers, distributors, hospitals, chain pharmacies, and individual pharmacies. The company was formerly known as Atlas Holdings, Inc. and changed its name to Amneal Pharmaceuticals, Inc. in 2018. Amneal Pharmaceuticals, Inc. was founded in 2002 and is headquartered in Bridgewater, New Jersey.

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.