Contrasting Fractyl Health (NASDAQ:GUTS) and Zealand Pharma A/S (OTCMKTS:ZLDPF)

Zealand Pharma A/S (OTCMKTS:ZLDPF) and Fractyl Health (NASDAQ:GUTS) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Volatility & Risk

Zealand Pharma A/S has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Fractyl Health has a beta of 2.42, suggesting that its stock price is 142% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Zealand Pharma A/S and Fractyl Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zealand Pharma A/S	0	8	1	2	2.45
Fractyl Health	1	1	3	0	2.40

Fractyl Health has a consensus price target of $50.25, suggesting a potential upside of 3,541.30%. Given Fractyl Health’s higher possible upside, analysts plainly believe Fractyl Health is more favorable than Zealand Pharma A/S.

Profitability

This table compares Zealand Pharma A/S and Fractyl Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zealand Pharma A/S	58.86%	17.56%	16.17%
Fractyl Health	N/A	-1,362.10%	-84.89%

Valuation and Earnings

This table compares Zealand Pharma A/S and Fractyl Health”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zealand Pharma A/S	$1.40 billion	1.71	$977.29 million	$6.03	5.54
Fractyl Health	N/A	N/A	-$140.95 million	($10.56)	-0.13

Zealand Pharma A/S has higher revenue and earnings than Fractyl Health. Fractyl Health is trading at a lower price-to-earnings ratio than Zealand Pharma A/S, indicating that it is currently the more affordable of the two stocks.

Summary

Zealand Pharma A/S beats Fractyl Health on 9 of the 12 factors compared between the two stocks.

About Zealand Pharma A/S

Zealand Pharma A/S, a biotechnology company, engages in the discovery, development, and commercialization of peptide-based medicines in Denmark. It has a portfolio of medicines focusing on gastrointestinal and metabolic diseases, and other specialty disease areas with unmet medical needs. The company offers Dasiglucagon, a single use syringe or autoinjector for the treatment of severe hypoglycemia; and Dasiglucagon bi-hormone artificial pancreas systems containing insulin and dasiglucagon. Its pipeline includes Dasiglucagon that is in Phase III clinical trials for treating congenital hyperinsulinism. The company is also developing glepaglutide, a long acting GLP-2 analog, which is in Phase III clinical trials for the treatment of short bowel syndrome. The company was incorporated in 1997 and is based in Søborg, Denmark.

About Fractyl Health

Fractyl Health, Inc., a metabolic therapeutics company, develops therapies for the treatment of type 2 diabetes (T2D) and obesity. The company develops Revita DMR System (Revita), an outpatient procedural therapy designed to durably modify duodenal dysfunction, a pathologic consequence of a high fat and high sugar diet, which can initiate T2D and obesity in humans. It also develops Rejuva, a novel adeno-associated virus delivered pancreatic gene therapy platform that is designed to enable long-term remission of T2D and obesity by durably altering metabolic hormone function in the pancreatic islet cells of patients. Fractyl Health, Inc. was formerly known as Fractyl Laboratories Inc. and changed its name to Fractyl Health, Inc. on June 09, 2021. The company was incorporated in 2010 and is headquartered in Burlington, Massachusetts.