Phathom Pharmaceuticals (NASDAQ:PHAT) versus Zentalis Pharmaceuticals (NASDAQ:ZNTL) Head to Head Review

Zentalis Pharmaceuticals (NASDAQ:ZNTL) and Phathom Pharmaceuticals (NASDAQ:PHAT) are both small-cap healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Valuation & Earnings

This table compares Zentalis Pharmaceuticals and Phathom Pharmaceuticals”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zentalis Pharmaceuticals	$67.43 million	3.96	-$137.06 million	($1.95)	-1.91
Phathom Pharmaceuticals	$175.11 million	3.90	-$221.25 million	($1.28)	-6.59

Zentalis Pharmaceuticals has higher earnings, but lower revenue than Phathom Pharmaceuticals. Phathom Pharmaceuticals is trading at a lower price-to-earnings ratio than Zentalis Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Zentalis Pharmaceuticals has a beta of 1.85, meaning that its stock price is 85% more volatile than the S&P 500. Comparatively, Phathom Pharmaceuticals has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.

Institutional and Insider Ownership

99.0% of Phathom Pharmaceuticals shares are owned by institutional investors. 3.8% of Zentalis Pharmaceuticals shares are owned by company insiders. Comparatively, 9.3% of Phathom Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Zentalis Pharmaceuticals and Phathom Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zentalis Pharmaceuticals	N/A	-70.18%	-51.46%
Phathom Pharmaceuticals	-41.34%	N/A	-20.81%

Analyst Recommendations

This is a summary of recent ratings and target prices for Zentalis Pharmaceuticals and Phathom Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zentalis Pharmaceuticals	1	4	4	0	2.33
Phathom Pharmaceuticals	1	1	6	1	2.78

Zentalis Pharmaceuticals currently has a consensus target price of $6.75, indicating a potential upside of 81.21%. Phathom Pharmaceuticals has a consensus target price of $21.25, indicating a potential upside of 152.05%. Given Phathom Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Phathom Pharmaceuticals is more favorable than Zentalis Pharmaceuticals.

Summary

Phathom Pharmaceuticals beats Zentalis Pharmaceuticals on 10 of the 15 factors compared between the two stocks.

About Zentalis Pharmaceuticals

Zentalis Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing small molecule therapeutics for the treatment of various cancers. Its products candidatures include the ZN-c3, an inhibitor of WEE1, a protein tyrosine kinase for the treatment of inhibitor for advanced solid tumors and hematological malignancies; in Phase 2 clinical trial as a monotherapy for the treatment of uterine serous carcinoma indications; Phase 2 clinical trial in Cyclin E1 driven high-grade serous ovarian cancer, fallopian tube, or primary peritoneal cancer; Phase 1/2 clinical trial in combination with PARPi for platinum-resistant ovarian cancer; Phase 1b clinical trial in combination with chemotherapy in platinum-resistant ovarian, and peritoneal or fallopian tube cancer; Phase 1/2 clinical trial in combination with chemotherapy in relapsed or refractory osteosarcoma; Phase 1/2 clinical trial with encorafenib and cetuximab for mutant metastatic colorectal cancer; and Phase 1/2 clinical trial in combination with chemotherapy in pancreatic cancer. The company's products pipeline also includes ZN-d5, an oral small molecule inhibitor of B-cell lymphoma 2, for hematological malignancies and related disorders; and BCL-xL heterobifunctional degrader, a member of the anti-apoptotic BCL-2 proteins, for solid tumors and hematological malignancies. Zentalis Pharmaceuticals, Inc. has licensing agreements and strategic collaborations with Recurium IP Holdings, LLC; Pfizer, Inc.; Zentera Therapeutics; Dana-Farber; and GlaxoSmithKline plc. The company was incorporated in 2014 and is headquartered in New York, New York.

About Phathom Pharmaceuticals

Phathom Pharmaceuticals, Inc., biopharmaceutical company, focuses on developing and commercializing treatments for gastrointestinal diseases. The company has the rights in the United States, Europe, and Canada for an investigational potassium-competitive acid blocker (P-CAB) that blocks acid secretion in the stomach. It is also developing vonoprazan for the treatment of erosive gastroesophageal reflux disease; and in combination with antibiotics for the treatment of Helicobacter pylori infection. The company was incorporated in 2018 and is headquartered in Florham Park, New Jersey.