Contrasting The Medicines Company (MDCO) and Zynerba Pharmaceuticals (ZYNE)
The Medicines Company (NASDAQ: MDCO) and Zynerba Pharmaceuticals (NASDAQ:ZYNE) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitabiliy.
Earnings and Valuation
This table compares The Medicines Company and Zynerba Pharmaceuticals’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|The Medicines Company||$141.74 million||18.60||-$306.00 million||($1.90)||-19.52|
|Zynerba Pharmaceuticals||N/A||N/A||-$26.59 million||($2.68)||-6.35|
Zynerba Pharmaceuticals has higher revenue, but lower earnings than The Medicines Company. The Medicines Company is trading at a lower price-to-earnings ratio than Zynerba Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
This table compares The Medicines Company and Zynerba Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Medicines Company||-91.25%||-19.09%||-7.60%|
Insider and Institutional Ownership
30.4% of Zynerba Pharmaceuticals shares are held by institutional investors. 7.9% of The Medicines Company shares are held by company insiders. Comparatively, 10.0% of Zynerba Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
The Medicines Company has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Zynerba Pharmaceuticals has a beta of 5.17, indicating that its share price is 417% more volatile than the S&P 500.
This is a breakdown of recent ratings for The Medicines Company and Zynerba Pharmaceuticals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Medicines Company||0||2||9||0||2.82|
The Medicines Company currently has a consensus price target of $56.11, indicating a potential upside of 51.28%. Zynerba Pharmaceuticals has a consensus price target of $32.25, indicating a potential upside of 89.48%. Given Zynerba Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Zynerba Pharmaceuticals is more favorable than The Medicines Company.
Zynerba Pharmaceuticals beats The Medicines Company on 7 of the 12 factors compared between the two stocks.
About The Medicines Company
The Medicines Company is a global biopharmaceutical company. The Company is focused on advancing the treatment of acute and intensive care patients through the delivery of medicines to the hospital marketplace around the world. It markets Angiomax (bivalirudin), Ionsys (fentanyl iontophoretic transdermal system), Minocin (minocycline) for injection and Orbactiv (oritavancin). It also has a pipeline of products in development, including Carbavance, inclisiran and MDCO-700. Carbavance is used for the treatment of hospitalized patients with gram-negative bacterial infections. Inclisiran is used for the treatment of hypercholesterolemia. MDCO-700 includes sedative-hypnotic, which is used to induce and maintain sedation for procedural care and general anesthesia for surgical care. In addition to these products and products in development, it has a portfolio of generic drugs.
About Zynerba Pharmaceuticals
Zynerba Pharmaceuticals, Inc. is a specialty pharmaceutical company. The Company is engaged in developing and commercializing transdermal synthetic cannabinoid treatments for patients with high unmet needs. Its development pipeline includes two product candidates: ZYN002 and ZYN001. ZYN002 is a synthetic cannabidiol (CBD), which is a non-psychoactive cannabinoid, formulated as a patent-protected permeation-enhanced gel for transdermal delivery through the skin and into the circulatory system. ZYN002 is in Phase II clinical development in patients with refractory epilepsy, in patients with osteoarthritis of the knee, as well as in patients with Fragile X syndrome. ZYN001 is a pro-drug of tetrahydrocannabinol (THC) that enables transdermal delivery through the skin and into the circulatory system through a patch. ZYN001 is targeting two pain indications, fibromyalgia and peripheral neuropathic pain.
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