Zai Lab (NASDAQ:ZLAB – Get Free Report) and Blueprint Medicines (NASDAQ:BPMC – Get Free Report) are both mid-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.
Profitability
This table compares Zai Lab and Blueprint Medicines’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zai Lab | -177.42% | -37.58% | -32.11% |
| Blueprint Medicines | -284.02% | -100.31% | -44.52% |
Institutional & Insider Ownership
54.0% of Zai Lab shares are held by institutional investors. 5.2% of Zai Lab shares are held by company insiders. Comparatively, 3.9% of Blueprint Medicines shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zai Lab | $215.04 million | 13.01 | -$443.29 million | ($4.28) | -6.64 |
| Blueprint Medicines | $204.04 million | 17.66 | -$557.52 million | ($9.71) | -6.14 |
Zai Lab has higher revenue and earnings than Blueprint Medicines. Zai Lab is trading at a lower price-to-earnings ratio than Blueprint Medicines, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Zai Lab has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Blueprint Medicines has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and target prices for Zai Lab and Blueprint Medicines, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zai Lab | 0 | 0 | 2 | 0 | 3.00 |
| Blueprint Medicines | 2 | 4 | 8 | 1 | 2.53 |
Zai Lab presently has a consensus target price of $86.38, suggesting a potential upside of 203.82%. Blueprint Medicines has a consensus target price of $75.67, suggesting a potential upside of 27.00%. Given Zai Lab’s stronger consensus rating and higher probable upside, analysts plainly believe Zai Lab is more favorable than Blueprint Medicines.
Summary
Zai Lab beats Blueprint Medicines on 11 of the 15 factors compared between the two stocks.
About Zai Lab
Zai Lab Limited develops and commercializes therapies to treat oncology, autoimmune disorders, infectious diseases, and neuroscience primarily in Mainland China and Hong Kong. Its commercial products include Zejula, a once-daily small-molecule poly polymerase 1/2 inhibitor; Optune, a device that delivers tumor treating fields; NUZYRA for acute bacterial skin and skin structure infections, and community acquired bacterial pneumonia; and Qinlock to treat gastrointestinal stromal tumors. The company also develops Odronextamab to treat follicular lymphoma, diffuse large B-cell lymphoma, and other B-celllymphomas; Repotrectinib, a tyrosine kinase inhibitor (TKI) to target ROS1 and TRK A/B/C in TKI-naïve- or -pretreated cancer patients; Margetuximab for the treatment of breast and gastroesophageal cancers; Tisotumab vedotin, an antibody drug conjugate; Adagrasib for treating KRAS-G12C-mutated NSCLC, colorectal cancer, pancreatic cancer, and other solid tumors; and Bemarituzumab to treat gastric and gastroesophageal junction cancer. In addition, it develops Zipalertinib for the treatment of patients with EGFR exon 20 insertion NSCLC; Elzovantinib, an orally bioavailable multi-targeted kinase inhibitor; ZL-2313, an investigational oral EGFR inhibitor; ZL-1211, a humanized IgG1 monoclonal antibody that targets CLDN18.2; ZL-1218 is humanized IgG1 monoclonal antibody to induce potent antibody-dependent cellular cytotoxicity activity that enables NK cell-mediated killing of CCR8-expressing T-regs; Efgartigimod to reduce disease-causing immunoglobulin G antibodies; ZL-1102, a human nanobody targeting interleukin- 17A; Sulbactam/durlobactam for the treatment of serious infections caused by Acinetobacter; and KarXT for the treatment of psychiatric and neurological conditions. The company was incorporated in 2013 and is headquartered in Shanghai, China.
About Blueprint Medicines
Blueprint Medicines Corporation, a precision therapy company, develops medicines for genomically defined cancers and blood disorders in the United States and internationally. The company is developing AYVAKIT for the treatment of systemic mastocytosis (SM) and gastrointestinal stromal tumors; BLU-263, an orally available, potent, and KIT inhibitor for the treatment of indolent SM and other mast cell disorders; and Fisogatinib. It is also developing GAVRETO for the treatment of RET fusion-positive non-small cell lung cancer, altered thyroid carcinoma, medullary thyroid carcinoma, and other solid tumors; BLU-701 and BLU-945 for the treatment of epidermal growth factor receptor driven non-small-cell lung carcinoma (NSCLC); and BLU-451 to treat NSCLC in patients with epidermal growth factor receptor gene (EGFR) exon 20 insertion mutations. In addition, the company is developing BLU-782, for the treatment of fibrodysplasia ossificans progressive; BLU- 222 to treat patients with cyclin E aberrant cancers; and BLU-852 for the treatment of advanced cancers. It has collaboration and license agreements with Clementia Pharmaceuticals, Inc.; Proteovant Therapeutics; CStone Pharmaceuticals; Genentech, Inc.; Hoffmann-La Roche Inc.; and Zai Lab (Shanghai) Co., Ltd. The company was formerly known as Hoyle Pharmaceuticals, Inc. and changed its name to Blueprint Medicines Corporation in June 2011. Blueprint Medicines Corporation was incorporated in 2008 and is headquartered in Cambridge, Massachusetts.
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