Nantkwest (NK) vs. Epizyme (EPZM) Critical Contrast

Nantkwest (NASDAQ: NK) and Epizyme (NASDAQ:EPZM) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for Nantkwest and Epizyme, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nantkwest 1 2 1 0 2.00
Epizyme 0 1 9 0 2.90

Nantkwest currently has a consensus target price of $5.33, suggesting a potential upside of 5.19%. Epizyme has a consensus target price of $23.00, suggesting a potential upside of 81.10%. Given Epizyme’s stronger consensus rating and higher probable upside, analysts clearly believe Epizyme is more favorable than Nantkwest.

Institutional & Insider Ownership

19.1% of Nantkwest shares are held by institutional investors. Comparatively, 85.3% of Epizyme shares are held by institutional investors. 70.2% of Nantkwest shares are held by insiders. Comparatively, 25.2% of Epizyme shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Nantkwest and Epizyme’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nantkwest $40,000.00 10,071.56 -$120.80 million ($1.27) -3.99
Epizyme $8.01 million 109.84 -$110.21 million ($2.27) -5.59

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

Risk and Volatility

Nantkwest has a beta of 3.41, suggesting that its stock price is 241% more volatile than the S&P 500. Comparatively, Epizyme has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500.

Profitability

This table compares Nantkwest and Epizyme’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nantkwest -204,606.36% -36.21% -32.04%
Epizyme N/A -67.04% -53.15%

Summary

Epizyme beats Nantkwest on 7 of the 13 factors compared between the two stocks.

Nantkwest Company Profile

NantKwest, Inc. is a clinical-stage immunotherapy company. The Company is focused on harnessing the power of the innate immune system by using the natural killer cell to treat cancer, infectious diseases and inflammatory diseases. Its immuno-oncology NK platform has multiple modes to induce cell death against the tumor or infected cell by direct killing by binding to stress ligands expressed by the diseased cell with the release of toxic granules directly into the tumor cell; antibody mediated killing by binding to antibodies administered in combination and enhancing the cancer killing effect of the administered antibody, enabling targeted cell killing through antibody dependent cellular cytotoxicity (ADCC), and target activated killing by binding to known or newly discovered tumor-specific antigens expressed on the surface of tumor cells and inducing cell death by the release of toxic granules directly into the tumor cell and by the release of cytokines and chemokines.

Epizyme Company Profile

Epizyme, Inc. is a clinical-stage biopharmaceutical company. The Company discovers, develops and plans to commercialize epigenetic therapies for cancer patients. The Company is engaged in the discovery and development of novel epigenetic therapies for cancer patients. The Company develops small molecule inhibitors of a class of enzymes known as histone methyltransferases (HMTs). The Company develops small molecule inhibitors of other chromatin modifying proteins (CMPs). The Company’s lead product candidate, tazemetostat, is a potent and selective inhibitor of the enhancer of zeste homolog 2 (EZH2) histone methyltransferases (HMT), an enzyme that plays an important role in various cancers. The Company is evaluating tazemetostat in a Phase II study in adults with relapsed or refractory non-Hodgkin lymphoma (NHL), and one Phase I study in children with molecularly defined solid tumors. The Company owns the global development and commercialization rights to tazemetostat outside of Japan.

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