Financial Comparison: Incannex Healthcare (NASDAQ:IXHL) & Zai Lab (NASDAQ:ZLAB)

Zai Lab (NASDAQ:ZLAB) and Incannex Healthcare (NASDAQ:IXHL) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zai Lab	-116.45%	-40.21%	-32.48%
Incannex Healthcare	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Zai Lab and Incannex Healthcare, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zai Lab	0	0	5	0	3.00
Incannex Healthcare	0	0	0	0	N/A

Zai Lab currently has a consensus target price of $58.97, suggesting a potential upside of 218.92%. Given Zai Lab’s higher possible upside, research analysts clearly believe Zai Lab is more favorable than Incannex Healthcare.

Insider and Institutional Ownership

41.7% of Zai Lab shares are owned by institutional investors. Comparatively, 0.4% of Incannex Healthcare shares are owned by institutional investors. 5.2% of Zai Lab shares are owned by company insiders. Comparatively, 14.6% of Incannex Healthcare shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Zai Lab has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Incannex Healthcare has a beta of 8.25, meaning that its share price is 725% more volatile than the S&P 500.

Earnings & Valuation

This table compares Zai Lab and Incannex Healthcare’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zai Lab	$266.72 million	6.99	-$334.62 million	($3.49)	-5.37
Incannex Healthcare	$930,000.00	184.30	-$13.45 million	N/A	N/A

Incannex Healthcare has lower revenue, but higher earnings than Zai Lab.

Summary

Incannex Healthcare beats Zai Lab on 7 of the 11 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. 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.

About Incannex Healthcare

Incannex Healthcare Inc., a clinical stage pharmaceutical development company, engages in the research, development, and sale of medicinal cannabinoid and psychedelic pharmaceutical products and therapies. It develops products for the treatment of obstructive sleep apnoea (OSA), traumatic brain injury (TBI) and concussion, lung inflammation (ARDS, COPD, asthma, bronchitis), rheumatoid arthritis, inflammatory bowel disease, anxiety disorders, addiction disorders, pain, and other indications. The company offers APIRx-1801, an ultrapure tetrahydrocannabinol; APIRx-1802, an ultrapure CBD; and APIRx-1803, an ultrapure cannabigerol. It also develops IHL-42X, which has completed Phase IIb clinical trial for obstructive sleep apnea; Psi-GAD that is in Phase IIa clinical trial for generalized anxiety disorder; MedChew Dronabinol, which has completed Phase Ia clinical trial for nausea and vomiting in chemotherapy; CanChew Plus that has completed Phase IIa clinical trial for irritable bowel syndrome; APIRx-1601, which has completed Phase IIa clinical trial for vitiligo; APIRx-1602 skin that has completed Phase IIa clinical trial for psoriasis; and APIRx-1603, which has completed Phase IIa clinical trial for atopic dermatitis. In addition, its product portfolio includes IHL-675A for inflammatory lung disease, IHL-675A for rheumatoid arthritis, IHL-675A for inflammatory bowel disease, and IHL-216A for traumatic brain injury and concussion, which have completed pre-clinical trials; and MedChew 1401 for pain and spasticity in multiple sclerosis, MedChew GB for post-herpatic neuralgia, MedChew-1502 for Parkinson's disease, MedChew-1503 for dementia, MedChew RL for restless legs syndrome, APIRx 1505 Flotex for chrohn's disease, CanChew RX and SuppoCan (Suppository) for inflammatory bowel disease, CheWell for addiction of cannabis, CanQuit for tobacco smoking cessation, CanQuit O for opioid addiction, APIRx-1701 for glaucoma, suppoCan gastro for IBD, and APIRx-1702 for dry eye syndrome that are in pre-clinical trials. Incannex Healthcare Inc. was incorporated in 2001 and is based in Sydney, Australia.