Reviewing Zhengye Biotechnology (NASDAQ:ZYBT) and Arcturus Therapeutics (NASDAQ:ARCT)

Arcturus Therapeutics (NASDAQ:ARCT) and Zhengye Biotechnology (NASDAQ:ZYBT) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Valuation and Earnings

This table compares Arcturus Therapeutics and Zhengye Biotechnology”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arcturus Therapeutics	$82.03 million	2.38	-$65.78 million	($2.38)	-2.89
Zhengye Biotechnology	$25.53 million	1.85	$1.55 million	N/A	N/A

Zhengye Biotechnology has lower revenue, but higher earnings than Arcturus Therapeutics.

Profitability

This table compares Arcturus Therapeutics and Zhengye Biotechnology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arcturus Therapeutics	-80.19%	-29.13%	-22.03%
Zhengye Biotechnology	N/A	N/A	N/A

Institutional and Insider Ownership

94.5% of Arcturus Therapeutics shares are held by institutional investors. 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.

Volatility & Risk

Arcturus Therapeutics has a beta of 2.4, suggesting that its share price is 140% more volatile than the S&P 500. Comparatively, Zhengye Biotechnology has a beta of -4.18, suggesting that its share price is 518% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Arcturus Therapeutics and Zhengye Biotechnology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcturus Therapeutics	1	3	8	1	2.69
Zhengye Biotechnology	1	0	0	0	1.00

Arcturus Therapeutics presently has a consensus target price of $29.50, suggesting a potential upside of 329.40%. Given Arcturus Therapeutics’ stronger consensus rating and higher possible upside, equities analysts clearly believe Arcturus Therapeutics is more favorable than Zhengye Biotechnology.

Summary

Arcturus Therapeutics beats Zhengye Biotechnology on 9 of the 13 factors compared between the two stocks.

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.

About Zhengye Biotechnology

Zhengye Biotechnology Holding Limited is a veterinary vaccine manufacturer which encompasses research, development, manufacturing and sales of veterinary vaccines, with a focus on livestock vaccine principally in China. Zhengye Biotechnology Holding Limited is based in Jilin, China.