Zai Lab (NASDAQ:ZLAB) & Quoin Pharmaceuticals (NASDAQ:QNRX) Head-To-Head Analysis

Quoin Pharmaceuticals (NASDAQ:QNRX) and Zai Lab (NASDAQ:ZLAB) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Risk and Volatility

Quoin Pharmaceuticals has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500. Comparatively, Zai Lab has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Profitability

This table compares Quoin Pharmaceuticals and Zai Lab’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quoin Pharmaceuticals	N/A	-125.60%	-64.77%
Zai Lab	-76.14%	-36.97%	-27.10%

Institutional & Insider Ownership

8.6% of Quoin Pharmaceuticals shares are held by institutional investors. Comparatively, 41.7% of Zai Lab shares are held by institutional investors. 3.7% of Quoin Pharmaceuticals shares are held by company insiders. Comparatively, 13.9% of Zai Lab shares are held by company 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 and Earnings

This table compares Quoin Pharmaceuticals and Zai Lab”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quoin Pharmaceuticals	N/A	N/A	-$8.69 million	($4.05)	-0.08
Zai Lab	$266.72 million	11.41	-$334.62 million	($2.77)	-10.04

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Quoin Pharmaceuticals and Zai Lab, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quoin Pharmaceuticals	0	0	1	0	3.00
Zai Lab	0	0	2	1	3.33

Quoin Pharmaceuticals currently has a consensus price target of $4.00, suggesting a potential upside of 1,150.00%. Zai Lab has a consensus price target of $55.00, suggesting a potential upside of 97.77%. Given Quoin Pharmaceuticals’ higher possible upside, equities research analysts plainly believe Quoin Pharmaceuticals is more favorable than Zai Lab.

Summary

Zai Lab beats Quoin Pharmaceuticals on 9 of the 13 factors compared between the two stocks.

About Quoin Pharmaceuticals

Quoin Pharmaceuticals, Ltd., a clinical stage specialty pharmaceutical company, focuses on the development and commercialization of therapeutic products for rare and orphan diseases. Its lead product is QRX003, a topical lotion to treat Netherton Syndrome (NS). The company is also developing QRX004 for the treatment of recessive dystrophic epidermolysis bullosa; QRX007 to treat NS; and QRX008 for the treatment of scleroderma. It has a research agreement with Queensland University of Technology; a license agreement with Skinvisible Inc.; consulting agreements with Axella Research LLC; and a Master Service Agreement with Therapeutics Inc. The company was founded in 2018 and is based in Ashburn, Virginia.

About Zai Lab

Zai Lab Limited develops and commercializes therapies to treat oncology, autoimmune disorders, infectious diseases, and neuroscience. Its commercial products include Zejula, an orally administered poly polymerase 1/2 inhibitor; Optune, a cancer therapy that uses electric fields tuned to specific frequencies to kill tumor cells; NUZYRA for acute bacterial skin and skin structure infections, and community acquired bacterial pneumonia; Qinlock to treat gastrointestinal stromal tumors, and VYVGART, a human IgG1 antibody fragment for myesthenia gravis. The company also develops Tumor Treating Fields, a portable device for delivery of electric fields; Repotrectinib, a tyrosine kinase inhibitor (TKI) to target ROS1 and TRK A/B/C in TKI-naïve- or -pretreated cancer patients; Tisotumab vedotin, an antibody drug conjugate; Adagrasib for treating KRAS-G12C-mutated NSCLC, colorectal cancer, and pancreatic cancer; and Bemarituzumab to treat gastric and gastroesophageal junction cancer patients. In addition, it develops Sulbactam/durlobactam, a combination of a beta-lactam antibiotic and a beta-lactamase inhibitor for the treatment of serious infections caused by Acinetobacter; KarXT for the treatment of psychiatric and neurological conditions. It has license and collaboration agreement with Tesaro, Inc. to develop, manufacture, and commercialize niraparib; NovoCure to develop and commercialize Tumor Treating Fields; Deciphera to develop and commercialize ripretinib; Paratek Bermuda Ltd. to develop, manufacture, and commercialize omadacycline; argenx, to develop and commercialize efgartigimod; BMS to develop and commercialize tisotumab vedotin and repotrectinib; Mirati to research, develop, manufacture, and commercialize adagrasib; Amgen to develop and commercialize bemarituzumab; and Innoviva to develop and commercialize Sulbactam-Durlobactam; Karuna to develop and commercialize KarXT. The company was incorporated in 2013 and is headquartered in Shanghai, China.