Epizyme (NASDAQ:EPZM) and Mersana Therapeutics (NASDAQ:MRSN) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.
This table compares Epizyme and Mersana Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
90.9% of Epizyme shares are held by institutional investors. Comparatively, 95.7% of Mersana Therapeutics shares are held by institutional investors. 16.3% of Epizyme shares are held by company insiders. Comparatively, 5.3% of Mersana Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Epizyme and Mersana Therapeutics’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Epizyme||$23.80 million||47.03||-$170.29 million||($1.93)||-5.72|
|Mersana Therapeutics||$42.12 million||28.81||-$28.21 million||($0.65)||-27.29|
Mersana Therapeutics has higher revenue and earnings than Epizyme. Mersana Therapeutics is trading at a lower price-to-earnings ratio than Epizyme, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for Epizyme and Mersana Therapeutics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Epizyme currently has a consensus target price of $29.00, suggesting a potential upside of 162.92%. Mersana Therapeutics has a consensus target price of $24.75, suggesting a potential upside of 39.52%. Given Epizyme’s higher possible upside, equities analysts plainly believe Epizyme is more favorable than Mersana Therapeutics.
Risk & Volatility
Epizyme has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500. Comparatively, Mersana Therapeutics has a beta of 2.47, meaning that its stock price is 147% more volatile than the S&P 500.
Mersana Therapeutics beats Epizyme on 8 of the 14 factors compared between the two stocks.
Epizyme, Inc., a late-stage biopharmaceutical company, discovers, develops, and commercializes novel epigenetic medicines for patients with cancer and other diseases primarily in the United States. The company's lead products candidate is tazemetostat, an inhibitor of the EZH2 histone methyltransferase, which is in the Phase II clinical trial for patients with relapsed or refractory non-hodgkin lymphoma (NHL); Phase II clinical trial for relapsed or refractory patients with mesothelioma characterized by BAP1 loss-of-function; and Phase II clinical trial for adults and Phase I clinical trial for children with epithelioid sarcoma and other INI1-negative solid tumors. It also develops tazemetostat in combination with R-CHOP that is in the Phase Ib/II clinical trials in elderly patients with DLBCL; and tazemetostat in combination with PD-L1 inhibitor, which is in the Phase Ib/II clinical trials for the treatment of patients with relapsed or refractory metastatic non-small cell lung cancer. In addition, the company is developing EZM8266, a G9a inhibitor that is in the Phase 1 study for the treatment of sickle cell disease; pinometostat, which is in the preclinical studies stage for the treatment of acute myeloid leukemia and acute lymphoblastic leukemia; PRMT5 inhibitor that is in Phase II clinical trial for patients with solid tumors and NHL; and PRMT1 inhibitor, which is in the Phase 1 clinical trial. Epizyme, Inc. has collaboration agreements with Celgene Corporation; Genentech Inc.; Glaxo Group Limited; Boehringer Ingelheim International GmbH; Roche Molecular Systems, Inc.; Lymphoma Study Association; and Eisai Co. Ltd. The company was founded in 2007 and is headquartered in Cambridge, Massachusetts.
About Mersana Therapeutics
Mersana Therapeutics, Inc., a clinical stage biopharmaceutical company focusing on the development of antibody drug conjugate (ADC) for cancer patients with unmet need. The company develops Dolaflexin, a platform, which is used to generate a pipeline of proprietary ADC product candidates to address patient populations that are not amenable to treat with traditional ADC-based therapies. Its lead product candidate is XMT-1536, a Dolaflexin ADC targeting NaPi2b that is in Phase I clinical trial for the treatment of patients with ovarian cancer, non small cell lung cancer, and other orphan indications. Mersana Therapeutics, Inc. has a strategic research and development partnerships with Merck KGaA and Asana BioSciences, LLC for the development of ADC product candidates utilizing Fleximer. The company was formerly known as Nanopharma Corp. and changed its name to Mersana Therapeutics, Inc. in November 2005. Mersana Therapeutics, Inc. was incorporated in 2001 and is based in Cambridge, Massachusetts.
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